Horizon Lines Settles Class Action Suit

CHARLOTTE, N.C. (AP) — Horizon Lines Inc. , a shipping, trucking, and logistics company, said Friday it entered into a settlement agreement with the plaintiffs in a class action price-fixing lawsuit.

Under the terms of the settlement, Horizon will pay $20 million to resolve claims of alleged antitrust violations in Puerto Rico.

Horizon also agreed that certain plaintiffs who have contracts in the Puerto Rico trade with Horizon Lines would have the option, in lieu of receiving cash, to have their "base rates" frozen for two years.

The settlement agreement is still subject to court approval, the company said.

Several other lawsuits seeking class-action status have been filed against the company and the Antitrust Division of the U.S. Justice Department is also looking into possible antitrust violations in the domestic ocean-shipping business. Horizon said it is cooperating with the probe.

The Charlotte-based company also said that as a result of the settlement, it has amended a credit agreement with its lender group to lower the size of its revolving facility to $225 million from $250 million. The agreement also allows lenders to get rid of a $150 million incremental loan.