The Harris County Metropolitan Transit Authority last week reached a settlement with CAF USA Inc., over two disputed contracts for the construction of light-rail cars for its North and Southeast Corridor lines. CAF is a subsidiary of the Spanish firm Construcciones y Auxiliar de Ferrocarriles SA.

Under the agreement approved last week, the contracts are canceled and CAF will forego any additional payments for unpaid work and lost profits. In addition, CAF will refund $14 million to Metro.

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