Tuesday, February 1, 2011

Alcoa (NYSE:AA), St Croix Alumina LLC to Appeal Virgin Island Judgment

Alcoa (NYSE:AA) and partner St Croix Alumina LLC will reportedly appeal a decision in the Virgin Islands in regard to the sale of an alumina factory there.

The verdict, which awarded the plaintiffs $28.7 million in damages for alleged breach of warranty and negligence.

Damages were awarded to a group of four companies named SCRG, which acquired the assets from Alcoa and St. Croix.

A total of $22.6 million was awarded by the Territorial Court in the Virgin Islands for breach of warranty and negligence, and another $6.1 million was awarded in punitive damages.

Alcoa owned 60 percent of Alcoa World Alumina, the company in question sold, and Australian-based St. Croix Alumina LLC the remaining 40 percent.

The lawsuit centered around environmental compliance and breaches of disclosure of information alleged by SCRG.

Alcoa was trading at $17.29, gaining $0.72, or 4.35 percent, as of 2:45 PM EST.

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