Metals USA, Inc. has agreed in principle to resolve a consolidated class action lawsuit brought against it and each of its directors. The class action is a consolidation of two lawsuits related to the pending acquisition of the company by affiliates of Apollo Management, LP.

Under the proposed settlement, among other things, the plaintiffs' claims will be extinguished and Apollo will agree to waive, under certain circumstances, its right to receive any portion of the termination fee payable under the merger agreement in excess of $13.6 million (representing a reduction of approximately 20% of the termination fee). The company continues to deny that it has engaged in any wrongful acts and is entering into this settlement solely for the purpose of eliminating the burden and expense of future litigation.

The proposed settlement is subject to final approval of the Court and consummation of the pending acquisition. Consummation of the acquisition is subject to several conditions, including obtaining financing sufficient to fund the transaction. Upon approval of the proposed settlement by the Courts, plaintiff's attorneys are expected to apply for an award of attorneys' fees and expenses.

Metals USA provides a wide range of products and services in the heavy carbon steel, flat-rolled steel, specialty metals, and building products markets.