Crowley Settles Puerto Rican Cabotage Litigation
This past Friday, February 5, 2010, plaintiffs filed a motion seeking approval of a settlement reached between the Class Action Representatives and the Crowley Companies ( Crowley Maritime Corporation and Crowley Liner Services, Inc.) Under the proposed settlement $ 13.5 million would be paid into the settlement fund. Any class member who is a party to a Transportation Service Agreement with Horizon would have the option to elect, in lieu of receiving a cash payment, a freeze of the then existing contract base rates for two years.
Last summer the Horizon Line Companies also reached a proposed settlement under similar terms which includes a $ 20 million payment.
The litigation is continuing against the other defendants. However, this settlement puts additional pressure against them and we believe that a global settlement will be concluded shortly.
