USG Corp. said it settled a lawsuit...

USG Corp. said it settled a lawsuit with Merrill Lynch & Co. over claims that the investment concern used confidential information gained while representing USG to help Desert Partners L. P. in a later bid for the building supplies company. The offer was withdrawn after USG announced a restructuring. A spokesman for Chicago-based USG declined to provide any details of the out-of-court settlement. But he said: “We believe the settlement has sufficient value to us that it will encourage the investment banking community to avoid getting into potentially conflicting situations.” Merrill Lynch was not immediately available for comment.