CASES
K-Sea Transportation Partners L.P.
Class Period: Jan 30, 2009 to Jan 27, 2010
Lead Plaintiff Deadline: Mar 27, 2012 + Deadline passed
Summary of Case:
A securities class action has been filed against K-Sea Transportation Partners L.P. on behalf of itself and all other persons or entities, who purchased K-Sea securities (the "Class") between January 30, 2009 and January 27, 2010. The case was filed in the USDC - District of New Jersey.
The Complaint alleges as follows: Throughout the Class Period, K-Sea failed to disclose, among other things, that: (a) it was allowing its customers to renew contracts on very short terms in order to sustain its utilization rates; (b) the lack of a lease renewal option on K-Sea's Norfolk, Virginia water treatment facility would require the Company to overpay for the purchase of the facility by $1.7 million in order to keep its oily water disposal business; and (c) K-Sea's debt situation was worse that reported so that a planned equity offering would be insufficient to protect the Company from breaching its financial covenants. On January 28, 2010, before trading commenced, the Company revealed that K-Sea had incurred a $1.7 million charge in connection with overpaying for its water treatment facility due to lack of lease renewal options, the Company's vessel utilization was the lowest in a decade, and K-Sea's dividend was suspended.
As a result of these revelations, K-Sea units plummeted $4.99 or 33.5%, to close at $9.89 on January 28, 2010, on exceptionally heavy trading volume -- over 23 times the daily average.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.