LOS ANGELES, Dec. 31, 2008 (GLOBE NEWSWIRE) -- Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a class action lawsuit in the United States District Court for the District of Delaware on behalf of a Class consisting of all persons or entities who purchased or otherwise acquired the securities of Horizon Lines, Inc. ("Horizon" or the "Company") (NYSE:HRZ), between March 2, 2007 and April 25, 2008, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at http://www.glancylaw.com.
The Complaint charges Horizon and certain of its executive officers with violations of federal securities laws. Horizon is a container shipping and logistics company. Among other things, plaintiff claims that defendants misled investors as to Horizon's profitability and artificially inflated its stock price, by entering into improper price-fixing agreements with competitors, in violation of federal antitrust laws.
The Complaint alleges that throughout the Class Period defendants made false and misleading statements or failed to disclose material adverse facts about the Company's business, operations and prospects, including: (1) that Horizon and its co-conspirators had engaged in a combination and conspiracy in the United States and elsewhere to suppress and eliminate competition by, among other things, fixing the prices of rates, surcharges and other fees charged to customers for Puerto Rico freight services; (2) that the combination and conspiracy engaged in by Horizon and its co-conspirators had been 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; (3) that Horizon's publicly reported revenue and earnings had been improperly inflated due to improper price-fixing activities during the Class Period; (4) that, as a result of defendants' participation in price-fixing activities, Horizon's earnings reports and revenue guidance issued during the Class Period were false and misleading; (5) that the Company knew that its anti-competitive behavior, if discovered, could possibly subject the Company to future regulatory scrutiny; (6) that the Company lacked adequate internal controls; and (7) that the Company knew its financial results would be materially impacted if the Company were forced to stop its anti-competitive behavior.
On April 17, 2008, Horizon shocked investors when the Company 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, the Company'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 further shocked investors when the Company reported Horizon's financial results for the 2008 fiscal first quarter ended March 23, 2008, and revised downward the Company's earnings guidance for the 2008 fiscal year. This news caused the Company's 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.
Subsequently, on October 1, 2008, the DOJ issued a press release announcing that four shipping executives -- including three Horizon 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.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, no later than 60 days from the date of this Notice to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.