Leucadia anticipates recording $526 million of pre-tax gains from the settlement. Back in 2006, Leucadia had purchased $100 million worth unsecured notes issued by Fortescue in lieu of 4% revenue share payment from the latter's two mines until maturity in August 2019. However, due to risk of value dilution of the notes from Fortescue's plan to build a series of new mines, a railway and port facilities, Leucadia sued Fortescue and Forrest in 2010. This deal is expected to settle all litigations between the two parties. Leucadia has been reducing its stake holding in Fortescue Metals Group Ltd. by selling off its shares since 2011. Finally in July 2012, the company sold off its remaining stake in Fortescue for net cash proceeds of approximately $152.9 million. The company anticipates recording $125.8 million in net securities gain in the third quarter of 2012.