LegalApr 7, 2026, 04:31 PM
LSB Industries to Receive Approximately $20.9 Million Settlement in Long-Running Ammonia Plant Litigation
AI Summary
LSB Industries, Inc. has reached a Settlement and Mutual Release Agreement with Benham Constructors, LLC, resolving certain claims related to the construction of its El Dorado, AR ammonia plant. Under the terms, Benham will pay LSB approximately $20.9 million within 60 days of the March 26, 2026 effective date. This settlement partially resolves litigation that has been ongoing since 2016, providing a significant cash inflow for the company and reducing some legal overhang. However, LSB Industries explicitly stated it will continue to vigorously prosecute its claims for fraud and breach of contract against Leidos Inc. and Leidos Engineering, indicating that not all legal disputes are concluded.
Key Highlights
- LSB Industries, Inc. and its subsidiaries entered into a Settlement and Mutual Release Agreement with Benham Constructors, LLC on April 2, 2026, effective March 26, 2026.
- The settlement resolves certain claims stemming from engineering and procurement contracts related to the construction of LSB's ammonia plant at its El Dorado, AR facility, a dispute ongoing since 2016.
- Benham Constructors, LLC agreed to pay LSB Industries approximately $20.9 million.
- The payment of $20.9 million is due within 60 days of the March 26, 2026 Effective Date.
- The agreement leads to the dismissal of respective claims between LSB and Benham with prejudice, without any admission of liability by any party.
- LSB Industries explicitly stated that the settlement does not release its claims for fraud and breach of contract against Leidos Inc. and Leidos Engineering, which it plans to continue prosecuting.