Alcoa and Aluminum Bahrain BSC, or Alba, announced the lawsuit settlement Tuesday, hours before Alcoa was to release its third-quarter results.

Alcoa agreed to pay $85 million in cash to Alba without admitting liability. Separately, it resumed a long-term agreement to sell raw materials to Alba, which owns one of the largest aluminum smelters in the world.

In a statement, Alcoa said that the settlement was "the best possible outcome" and avoids the expense of litigation. Alba said the settlement released all claims against Alcoa and its related companies.

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