DOJ Reaches $3.4 Million Settlement with Shipping Companies Over Price Fixing Allegations

Sea Star Lines and Horizon Lines will pay a total of $3.4 million to settle with the Justice Department over allegations of price fixing in violation of the False Claims Act, the DOJ said in a press release. Sea Star will pay $1.9 million and Horizon will pay $1.5 million, it said. "The government alleged that former executives of the defendant ocean shippers used personal email accounts to communicate confidential bidding information, thereby enabling each of the shippers to know the transportation rates that its competitor intended to submit to federal agencies for specific routes," the agency said. "This information allowed the shippers to allocate specific routes between themselves at predetermined rates," affecting several government contracts. The companies have already pleaded guilty in a related criminal suit (see 11111822 and 11022522). Former Sea Star executive William Stallings, who worked as a whistleblower in the case, will receive about $512,719 of the funds, DOJ said.