Suit on Price of Records Settled

CHICAGO —  Warner Communications and three of its subsidiaries agreed today to pay $8.5 million to settle a federal antitrust suit charging that the company conspired to fix record prices.

Under the terms of the settlement submitted to U.S. District Judge Nicholas Bua, Warner and its subsidiaries will pay $5 million in cash and $3.5 million in advertising assistance to a group of record and cassette tape wholesalers and retailers. Warner does not admit liability under the settlement, which also covers Warner Brother Records, Warner-Elektra-Atlantic and Atlantic Recording Corp.