Class Action Settlement Agreement - Puerto Rico
Several class action lawsuits were filed against Sea Star Line and other carriers on behalf of direct purchasers of domestic ocean transportation services in the Puerto Rico trade lane. Those lawsuits were combined into one multidistrict litigation proceeding in the United States District Court for the District of Puerto Rico. The complaints allege price-fixing in violation of the Sherman Act and seek treble damages for alleged overcharges, along with costs and attorney's fees and an injunction against future unlawful conduct.
On July 21, 2010, Sea Star Line entered into a settlement agreement with the direct purchaser plaintiffs in the Puerto Rico class action litigation. Under the settlement agreement, Sea Star and certain affiliated companies have agreed to pay $18.5 million to resolve claims for alleged antitrust violations in the Puerto Rico trade lane.
The settlement agreement is subject to Court approval, a process that is likely to take several months to complete. In addition, Sea Star has the right to terminate the settlement agreement under certain circumstances.
Sea Star has also been sued by persons purporting to represent a class of indirect purchasers to domestic ocean transportation services in the Puerto Rico trade lane.' Sea Star believes those claims have no legal merit and is seeking to have the lawsuit dismissed.
Sea Star Line received a grand jury subpoena and search warrant seeking information regarding an investigation being conducted by the Antitrust Division of the U.S. Department of Justice into possible antitrust violations in the Puerto Rico trade lane. Sea Star continues to cooperate fully with the Antitrust Division's investigation.
