Kendall Law Group Announces Shareholder Investigation into Horizon Lines, Inc.
(DALLAS) 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 long-term shareholders who currently own HRZ shares and are interested in participating in a securities action. 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 a Kendall Law Group attorney at 877-744-3728 or by email at administrator@kendalllawgroup.com .
Kendall Law Group, LLP
(877) 744-3728 Toll Free
(214) 744-3000 Local
(214) 744-3015 Fax
3232 McKinney, Ste. 700
Dallas, TX 75204
administrator@kendalllawgroup.com
www.kendalllawgroup.com