Fletcher Building has got a lawsuit worth multimillion dollars settled in the United Sates with an acquisition worth more than $1 billion of bench top maker Formica in the year 2007.

According to what the company stated today, it had come to an agreement with the ex-owner, US private equity fund Cerberus, through milestone payments valuing up to US$50 million ($68 billion) that is potentially due to Cerberus post acquisition if some of the cost-saving initiatives were to be implemented.

Fletcher had made a payment worth US$28 million in milestone payments with regard to a couple out of the five initiatives.

Among these, US$18 million was held in escrow, and Cerberus got a payment of US$10 million. The remaining money of US$22 million was not paid because of the dispute regarding the achievement of the other three cost-saving initiatives.

According to the company, this dispute is now settled.

The agreement that has been reached implies that Fletcher is going to re-gain the US$12m of the money held in escrow and no further payments will be required of it.

Also, Cerberus will get to retain the US$6m of the money in escrow.