Horizon Lines 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.
The agreement effectively resolves claims related to class action lawsuits that were filed against Horizon 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 agreed to settle with these shippers at a total cost to the company of US$13.75 million in exchange for full release of all antitrust claims. Under the terms of the settlement agreement, Horizon will make a payment of US$5.75 million within ten business days of the November 23 effective date, a payment of US$4.0 million by June 30, 2012, and a final payment of US$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."
Horizon Lines entered into a settlement agreement with the class in June 2009, which received final court approval in September. Some shippers opted out of the class settlement, and Horizon has previously announced settlement with a number of them. The latest announcement resolves claims of all the remaining significant opt outs.
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