DALLAS, Sept. 24, 2009 (GLOBE NEWSWIRE) -- Kendall Law Group, led by a former federal judge and former US Attorney, announces a shareholder investigation against Horizon Lines, Inc. (NYSE:HRZ) and certain of its officers and directors concerning public statements made between March 2, 2007 and April 25, 2008.
The firm is seeking Horizon shareholders who wish to enforce strict corporate governance and internal controls on the company because of the allegations revealed in a class action. Shareholders must have purchased Horizon shares before or during the above time period. A class action was filed against the Company and certain executives in the District of Delaware on January 1, 2008. The complaint alleges that Horizon and its co-conspirators had engaged in a conspiracy in the US and elsewhere to suppress and eliminate competition by fixing the prices of rates, surcharges and other fees charged to customers for Puerto Rico freight services. This conspiracy was an unreasonable restraint of interstate and foreign trade and commerce in violation of Section 1 of the Sherman Act, 15 U.S.C. Section 1. Horizon's publicly reported revenue and earnings had been improperly inflated due to the price-fixing activities and as a result of their participation in these activities, their earnings reports and revenue guidance were false and misleading. The complaint also alleges that the Company knew that they lacked adequate internal controls and that its anti-competitive behavior could subject the Company to future regulatory scrutiny if discovered, which would materially impact the company.
On April 17, 2008, Horizon revealed that it was the subject of an antitrust investigation by the US Department of Justice Antitrust Division. As a result of this announcement, shares declined $3.53 per share to close at $14.70 on April 17 with heavy trading volume. On April 25, 2008, Horizon reported their financial reports for the 2008 fiscal first quarter ending March 23, 2008 and reduced the Company's earnings guidance for the 2008 fiscal year. This caused a decline of $3.83 per share, closing at $11.25 on April 25, 2008 on heavy trading volume.
Kendall Law Group has nationwide experience representing investors in securities litigation. For information about your rights as a Horizon shareholder, contact attorney Hamilton Lindley at 877-744-3728 or by email at hlindley@kendalllawgroup.com.
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