[030711.EN.SEA] Price-fixing Horizon Lines Settles With Home Depot For Undisclosed Sum

FINANCIALLY troubled Horizon Lines, brought low by fines for price fixing, and facing a raft of lawsuits, has made a separate settlement with US retailer Home Depot, which withdrew from the class action as part of the deal.

Initially fined US$45 million by the US Justice Department, the fine was reduced to $15 million because it was thought that the sum put the life of the company at risk. The Charlotte, North Carolina, carrier had to pay the lower fine over five years.

Horizon, and fellow price-fixers Star Line and Crowley Maritime, settled the class action suit for $52.25 million with Horizon paying $20 million, reported Newark's Journal of Commerce, which added that Horizon released no details in its filing with the Securities and Exchange Commission.

Horizon, the biggest Jones Act carrier, had already settled with Wal-Mart, which also withdrew from class action. The carrier is working through the remaining shippers, sometimes offering discounts on future services in lieu of cash payment.

Source : HKSG, 01.07.11.