The US Court of Appeals has dismissed an appeal by residents of three northern governorates in Iraq against a US court ruling that found in favour of AWB and others.

AWB now faces only two more legal cases relating to the Iraqi scandal.

The US class action had alleged that due to AWB's conduct during the United Nations oil-for-food program, when the Australian wheat exporter paid $300 million in bribes to Saddam Hussein's regime, AWB had depleted the UN oil-for-food escrow account.

The plaintiffs claimed that AWB's action illegally deprived them of the humanitarian benefits that the funds would have provided them. They also alleged that AWB and others engaged in an illegal conspiracy.

The plaintiffs filed their appeal soon after the original case was dismissed in October last year.

Two legal cases relating to the Iraqi scandal remain: a court action by Maurice Blackburn on behalf of AWB shareholders, which is due to start on November 30 in Sydney; and a civil law suit filed by the Iraqi Government in the US District Court against 93 companies that participated in the UN oil-for-food program.

"We aim to put a motion to dismiss that early in the new year. We understand the other 92 companies will be doing something similar," said AWB spokesman Peter McBride.

AWB has not made any provisions for the legal costs, but books them as significant items in annual results. Legal costs for the first half of the 2009 financial year amounted to $8 million.

The company announced it had also signed a deed of settlement with Iraq covering all previous commercial disputes. These relate to quality claims and demurrage disputes in the 2005-06 national pool. AWB will now be able to pay the balance of funds to growers in that pool.

Managing director Gordon Davis said the deal opened the way for AWB to export to Iraq in the future.

AWB's shares fell by 2.5¢, or 2 per cent, to close at $1.245.