Horizon Lines, Inc. is a domestic ocean shipping and integrated logistics company comprised of two primary operating subsidiaries. Horizon Lines, LLC owns or leases a fleet of 21 U.S.-flag containerships and 5 port terminals linking the continental United States with Alaska, Hawaii, Guam, Micronesia and Puerto Rico. Horizon Logistics, LLC offers logistics solutions to shippers from a suite of transportation and distribution management services designed by Aero Logistics, information technology developed by Horizon Services Group and intermodal trucking and warehousing services provided by Sea-Logix.
On April 17, 2008, Horizon Lines shocked investors when Horizon Lines revealed it was the subject of an antitrust investigation being conducted by the United States Department of Justice (the 'DOJ') Antitrust Division. On this news, Horizon Lines's shares declined $3.53 per share, or 19.36 percent, to close on April 17, 2008, at $14.70 per share, on unusually heavy trading volume. On April 25, 2008, Horizon Lines further shocked investors when Horizon Lines reported its financial results for the 2008 fiscal first quarter ended March 23, 2008, and revised downward Horizon Lines' earnings guidance for the 2008 fiscal year. This news caused Horizon Lines' shares to decline $3.83 per share, or 23.10 percent, to close on April 25, 2008, at $11.25 per share, on unusually heavy trading volume.
On October 1, 2008, the DOJ issued a press release announcing that four shipping executives -- including three Horizon Lines employees -- had agreed to plead guilty for their roles in a conspiracy, which continued as late as April 2008, to eliminate competition and raise prices for the movement of goods in the U.S. to Puerto Rico shipping lane, by agreeing not to compete for one another's customers, agreeing to rig bids submitted to government and commercial buyers, and agreeing to fix the prices of rates, surcharges and other fees charged to customers.
This securities aclass action lawsuit alleges that Horizon's illegal price fixing arrangement artificially inflated Horizon Lines' stock price.
Name (Stock Symbol)
Horizon Lines, Inc. (HRZ)
Horizon Lines, Inc. is a domestic ocean shipping and integrated logistics company. Its wholly owned subsidiary, Horizon Lines, LLC owns or leases a fleet of 21 U.S.-flag containerships and 5 port terminals linking the continental United States with Alaska, Hawaii, Guam, Micronesia and Puerto Rico.
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