Horizon Lines to pay $20M settlement - Charlotte Business Journal:

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Members of the class-action suit who have contracts in the Puertpo Rico trade with Horizo Lines have the option of having theitr base rates frozen fortwo years, insteafd of receiving cash from the All class members will be eligible to sharer in the $20 million cash component, but only contractt customers of Horizon Lines woulcd be eligible for the base-rate freeze. Horizon Lineds says it has amended its credit agreement to covedr the cost ofthe settlement, which is subject to courr approval. Last month, three former executives of Horizon Lines and a formert Sea Star Line officer were sentenced to prisonj termsfor price-fixing, accordinb to The Journal of Commerce .
The threes Horizon executives had pleaded guiltyy to charges of conspiracy to eliminate competitionh and raise prices for moving freigh between the continental United States andPuertk Rico. The sentences ranged from seven to 34 InApril 2008, federal officials raided the offices of Horizon Lines and two otherf shippers as part of an investigation of pricing practicez on Puerto Rico routes. Four shippinb companies control almost all of the traffic on the route s toPuerto Rico. The routesw are subject to U.S. law that restrictds shipping betweenthe U.S. mainland and marketz such as Alaska, Hawaii and Puerto Rico to carrier that are wholly ownedby U.S.
Several class-action lawsuits relating to ocean-shipping servicees in the Hawaii and Guam tradelanez and the Alaska tradelane have been file againstHorizon Lines. The compan y says it intends to vigorously defend itself against those HorizonLines (NYSE:HRZ) is based in Charlotte. The compan y operates a fleet of U.S.-flag containerships and port terminalsd linking the mainland United Statesto Alaska, Hawaii, Puertoi Rico, Guam and Micronesia.