USG, Lafarge settle lawsuit

USG Corp. and its subsidiary, United States Gypsum Co., have entered into an agreement with Lafarge North America to resolve a patent infringement lawsuit. Under the terms of the agreement, USG will receive $105 million from Lafarge and will grant Lafarge a license for the use of certain USG gypsum wallboard technologies.

These technologies were the subject of a 2003 lawsuit filed in the federal district court for the Northern District of Illinois. In that lawsuit, USG claimed that Lafarge misappropriated trade secrets and other information by hiring certain U.S. Gypsum employees, who then shared proprietary information regarding methods for producing gypsum wallboard. Lafarge and the former employees, who were named as defendants in the suit, denied the charges.

France-based Lafarge is a global supplier of cement, aggregates, concrete and gypsum construction materials.

Headquartered in Chicago, USG Corp. is a manufacturer and distributor of building products through United States Gypsum Co., USG Interiors and L&W Supply.