A civil lawsuit alleging that Alcoa Inc. bribed officials in the Persian Gulf state of Bahrain was put on hold so that U.S. investigators can conduct a criminal investigation of the aluminum maker.
U.S. District Judge Donetta W. Ambrose granted a Justice Department request to halt the lawsuit in which an aluminum company in Bahrain accused the Pittsburgh-based company of paying bribes through secretive shell companies in Asia and Europe.
The allegations "could be relevant to the government's criminal investigation and a potential criminal trial," federal prosecutors said in court documents filed last week.
Government-controlled Aluminum Bahrain BSC, also known as Alba, is seeking more than $1 billion in damages, according to a federal lawsuit filed last month in Pittsburgh.
Alcoa and Alba, which operates one of the world's largest aluminum smelters, had agreed to the Justice Department's request to put the civil case on hold before the Thursday ruling.
"Alba is certainly pleased that the criminal investigation will not be disrupted by the civil discovery. But we look forward to proceeding in the U.S. District Court as soon as the criminal case is completed," Alba spokesman Seth Levin said in an e-mail.
Alcoa spokesman Kevin Lowery has said the company will cooperate with investigators. An internal review found no wrongdoing and the company plans to vigorously defend itself, he said.
A Justice Department spokeswoman declined comment Friday.
Alba has been an Alcoa customer for about three decades and buys most of its alumina - a material used to make aluminum - from the company.
Alba's lawsuit alleges Alcoa and its affiliates violated mail and wire fraud statutes and the Foreign Corrupt Practices Act, among other laws.
Alcoa, the world's third-largest aluminum producer, reported revenue in 2007 of $30.75 billion, an all-time record.
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