Horizon Lines Reaches Settlement in Puerto Rico Antitrust Litigation Claims
Claims Resolved for $13.75 Million
Horizon Lines, Inc. (OTCQB: HRZL) announced that it has entered into a settlement agreement with all of the remaining significant shippers who opted out of the Puerto Rico direct purchaser antitrust class action settlement.
Horizon Lines agreed to settle with these shippers at a total cost to the company of $13.75 million in exchange for full release of all antitrust claims. Under the terms of the settlement agreement, Horizon Lines will make a payment of $5.75 million within 10 business days of the November 23, 2011, effective date, a payment of $4.0 million by June 30, 2012, and a final payment of $4.0 million by December 24, 2012.
"We are very pleased with this settlement, which brings to closure our last known major financial exposure relating to antitrust claims involving the Puerto Rico tradelane," said Michael T. Avara, Executive Vice President and Chief Financial Officer. "It also eliminates the potential for protracted and costly litigation."
The agreement effectively resolves claims related to class action lawsuits that were filed against Horizon Lines in 2008 on behalf of customers who purchased domestic ocean shipping services from the company and other ocean carriers in the Puerto Rico tradelane between May 2002 and April 2008. Horizon Lines entered into a settlement agreement with the class in June 2009, which received final court approval in September 2011. Some shippers opted out of the class settlement, and Horizon has previously announced settlement with a number of them. Today's announcement resolves claims of all the remaining significant opt outs.