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LOUISIANA-PACIFIC ASSESSED $4-MILLION FINE IN 1981 FTC ACTION

LOUISIANA-PACIFIC ASSESSED $4-MILLION FINE IN 1981 FTC ACTION
 PORTLAND, Ore., July 1 /PRNewswire/ -- Louisiana-Pacific Corp. (L-P)(NYSE: LPX) announced today it is considering its options after the Court of Appeals upheld a $4-million fine imposed on the company in an 11-year-old Federal Trade Commission (FTC) action. The fine will result in a second-quarter charge of about 7 cents per share.
 The case goes back to 1978, when Louisiana-Pacific acquired Fibreboard Corp. At the time of the acquisition, L-P agreed to an FTC decree requiring L-P to divest one of Fibreboard's facilities -- a medium-density fiberboard plant in Rocklin, Calif.
 Because of the depressed building products market caused in part by interest rates which peaked near 20 percent, L-P was unable to sell the Rocklin plant within the two-year deadline established in the decree. So in 1982 the Federal District Court imposed a $4-million fine. The plant was ultimately sold in 1983, and L-P spun off Fibreboard Corp. in 1988.
 L-P appealed the fine, and in 1985 the U.S. Court of Appeals decided in L-P's favor, setting aside the fine and ruling that the FTC should have reopened and reconsidered the case as L-P had previously requested. After several more court actions, the FTC reopened the case in 1989, and in 1990 the District Court affirmed its earlier judgment and imposed the $4-million fine. The Court of Appeals upheld the fine in a decision announced late last week.
 "We were surprised by the Appeals Court ruling, not only because they had decided in our favor on essentially the same issues in 1985, but because we were confident our case was a strong one," said Harry A. Merlo, L-P chairman and president.
 Louisiana-Pacific is a major building products company known for its innovation in developing high-performance, affordable, environmentally sound construction materials.
 -0- 7/01/92
 /CONTACT: Bill Hebert of Louisiana-Pacific, 503-221-0800/
 (LPX) CO: Louisiana-Pacific Corp.; Fibreboard Corp. ST: Oregon, California IN: PAP SU:


JH-SC -- SE002 -- 5783 07/01/92 14:07 EDT
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Publication:PR Newswire
Date:Jul 1, 1992
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