Official reports have confirmed that shareholders of AWB Ltd. have reached an agreement to settle a class action against the agribusiness firm looking for compensation for its failure to take the wraps off Iraqi kickbacks.

As AWB was getting ready to begin its defense in the Federal Court on Monday, John Sheahan, SC, an attorney acting on part of the AWB shareholders, informed the court that the parties have managed to reach an in-principle-agreement to settle the suit.

"The settlement won't break down", Mr. Sheahan told the court.

Post the announcement, the court was adjourned until sometime later during the week.

Ben Slade, AWB shareholders' solicitor informed that the settlement figure reached at was $39.5 Million, which included interest and cost.

"The company is pleased to put this matter behind it as this is the final legal matter directed against the company in Australia arising out of activities under the United Nations Oil For Food Program", said AWB Chairman Peter Polson.