The Complaint charges Horizon and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Horizon Lines engages in container shipping and integrated logistics operations. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: 1) that Horizon Lines had engaged in a price-fixing scheme to set the prices of rates, surcharges, and other fees charged to its customers for Puerto Rico freight services, in violation of the laws of the United States; (2) that Horizon Lines' conduct, with respect to its price-fixing scheme, amounted to an unreasonable restraint of interstate and foreign trade and commerce; (3) that, as a result of Defendants' conduct, Horizon Lines' publicly reported earnings and revenue had been artificially inflated due to illegal price-fixing activities; (4) that the Company lacked adequate internal and financial controls; (5) that, as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times; and (6) that, as a result of the above, the Company's statements about its financial well-being and future business prospects were lacking in any reasonable basis when made.
On April 17, 2008, Horizon Lines shocked investors when the Company revealed that it was the subject of an investigation being conducted by the Antitrust Division of the United States Department of Justice ("DOJ"). The Company also disclosed that federal agents had served the Company with search warrants and a grand jury subpoena related to an investigation into the pricing practices of ocean carriers operating in the Puerto Rico trade. Upon the release of this news, the Company's shares declined $3.53 per share, or 19.36 percent, to close on April 17, 2008 at $14.70 per share, on unusually heavy trading volume.

Then, on April 25, 2008, Horizon Lines again shocked investors when the Company released its financial results for the first quarter of fiscal 2008 (ended March 23, 2008), and revised its earnings guidance downward for fiscal year 2008. The Company updated its earnings guidance for the full year 2008, and stated that its operating revenue would now be between $1.315 - $1.350 billion, its EBITDA would be between $145 - $160 million, and its diluted earnings per share would be between $1.30 - $1.69. The downward revisions to Horizon Lines' fiscal year 2008 earnings guidance was shocking to investors because the Company had just increased its fiscal 2008 guidance on February 1, 2008. Upon the release of this news, the Company's shares declined an additional $3.83 per share, or 23.10 percent to close on April 25, 2008 at $11.25 per share, again on unusually heavy trading volume.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Barroway Topaz Kessler Meltzer & Check which prosecutes class actions in both state and federal courts throughout the country. Barroway Topaz Kessler Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.