Price-fixing Sea Star Line, Crowley settle on US$52 million for shippers

US carriers' Horizon Lines, Sea Star Line and Crowley Maritime will pay shippers US$52.2 million in damages for price-fixing between the US mainland, Hawaii and Guam.


Several companies opted out of $52.25 million class-action settlement in Puerto Rico including Wal-Mart, Kraft and Procter & Gamble to pursue other law suits resulting in extensions of payment deadline.


Sea Star Line and Crowley Maritime have agreed to pay $18.5 million and $13.75 million respectively with Horizon yet to agree to pay its $20 million share. The 32 civil antitrust lawsuits filed following five employees - three from Horizon and two from Sea Star - pleading guilty to antitrust conspiracy.


Charlotte, North Carolina-based Horizon Lines has settled with Wal-Mart for an undisclosed amount while it continues to provide shipping service to the giant retailer.


Indirect purchasers' claim, shippers' customers who say they paid inflated prices caused by cartel fixing between 2002 and 2008, has led to the lines paying $1.7 million each, reported Newark's Journal of Commerce. Of the $5.3 million, $4 million will go the claimants with $1.3 million to the lawyers representing the plaintiffs.


Horizon Lines has agreed to pay a fine of $45 million for criminal antitrust violations which affect its debt covenants. It is working with lenders to obtain waivers or amendments to bond agreements.
(Source:http://www.schednet.com)