Securities Class-Action Suit Against Horizon Lines Dismissed with Prejudice by Federal Court
News Release
Horizon Lines, Inc. (Corporate Headquarters)
May 21, 2010
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<DIV><SPAN style="FONT-WEIGHT: bold">CHARLOTTE, N.C. </SPAN>(May 19, 2010)-
Horizon Lines, Inc. (NYSE: HRZ) announced today that its motion to dismiss a
securities class-action lawsuit accusing the company and certain current and
former senior officers of misleading investors has been granted by a federal
judge for a second and final time.<BR> <BR>The company's motion to dismiss
the suit was granted with prejudice on May 18, 2010, by Federal District Court
Judge Harvey Bartle III, who ruled that the complaint did not meet the pleading
standards of the Private Securities Litigation Reform Act. The ruling was made
in the United States District Court for the District of Delaware. Judge Bartle
found the complaint failed to plead facts showing that the officers responsible
for making public statements about the company's performance were aware of an
alleged price-fixing conspiracy in the Puerto Rico tradelane, in which three
lower-ranking Horizon Lines managers were subsequently implicated and pled
guilty. The plaintiffs have the right to file an appeal within 30 days of the
May 18th ruling. <BR> <BR>The class-action lawsuit was filed on December
31, 2008, by the City of Roseville Employees' Retirement System, naming the
company and current and former employees, including the company's Chairman,
President, and Chief Executive Officer Chuck Raymond, as defendants. Horizon
Lines filed a motion to dismiss, which was granted by the Court on November 13,
2009. However, the plaintiffs were granted time to file an amended complaint,
which they did on December 23, 2009. On February 12, 2010, Horizon Lines filed a
motion to dismiss the amended complaint. <BR> <BR>The amended complaint,
which purported to be on behalf of purchasers of Horizon Lines common stock,
alleged that, among other things, the company made material misstatements and
omissions in connection with the alleged price-fixing conspiracy in its shipping
business in Puerto Rico in violation of federal antitrust laws.
<BR> <BR>Horizon Lines intends to continue to cooperate fully with
the Department of Justice in its ongoing antitrust investigation. The
investigation was publicly announced in April 2008, and in October of that year,
three former Horizon Lines managers agreed to plead guilty to Sherman Act
antitrust violations. <BR><BR></DIV></BODY></HTML>
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<DIV><SPAN style="FONT-WEIGHT: bold">CHARLOTTE, N.C. </SPAN>(May 19, 2010)-
Horizon Lines, Inc. (NYSE: HRZ) announced today that its motion to dismiss a
securities class-action lawsuit accusing the company and certain current and
former senior officers of misleading investors has been granted by a federal
judge for a second and final time.<BR> <BR>The company's motion to dismiss
the suit was granted with prejudice on May 18, 2010, by Federal District Court
Judge Harvey Bartle III, who ruled that the complaint did not meet the pleading
standards of the Private Securities Litigation Reform Act. The ruling was made
in the United States District Court for the District of Delaware. Judge Bartle
found the complaint failed to plead facts showing that the officers responsible
for making public statements about the company's performance were aware of an
alleged price-fixing conspiracy in the Puerto Rico tradelane, in which three
lower-ranking Horizon Lines managers were subsequently implicated and pled
guilty. The plaintiffs have the right to file an appeal within 30 days of the
May 18th ruling. <BR> <BR>The class-action lawsuit was filed on December
31, 2008, by the City of Roseville Employees' Retirement System, naming the
company and current and former employees, including the company's Chairman,
President, and Chief Executive Officer Chuck Raymond, as defendants. Horizon
Lines filed a motion to dismiss, which was granted by the Court on November 13,
2009. However, the plaintiffs were granted time to file an amended complaint,
which they did on December 23, 2009. On February 12, 2010, Horizon Lines filed a
motion to dismiss the amended complaint. <BR> <BR>The amended complaint,
which purported to be on behalf of purchasers of Horizon Lines common stock,
alleged that, among other things, the company made material misstatements and
omissions in connection with the alleged price-fixing conspiracy in its shipping
business in Puerto Rico in violation of federal antitrust laws.
<BR> <BR>Horizon Lines intends to continue to cooperate fully with
the Department of Justice in its ongoing antitrust investigation. The
investigation was publicly announced in April 2008, and in October of that year,
three former Horizon Lines managers agreed to plead guilty to Sherman Act
antitrust violations. <BR><BR></DIV></BODY></HTML>