The Commerce Commission has settled with Carter Holt Harvey in a long standing case about the false advertising of a timber product.
Carter Holt pleaded guilty in 2006 when the commission took action saying Laserframe timber - sold between 1998 and 2003 - did not comply with the standards as claimed by the company.
The company was fined $900,000 at that time.
The commission then took civil action to recover the losses suffered by the company's rivals and customers.
The two sides have settled and Carter Holt will make a voluntary ex-gratia payment of $1.5 million towards a reconstruction project in Christchurch and $150,000 in total costs.
Carter Holt does not admit that any person suffered loss or damage.
The commission's competition manager, Greg Allan, says it was not strong enough, and there will houses still standing today built with it.
Despite this, Mr Allan says these houses are not dangerous because of builders' practices of using more wood than strictly needed.
