NEW YORK, Jan. 27, 2012 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP has filed a class action lawsuit against K-Sea Transportation ("K-Sea" or the "Company") and certain of its officers. The class action (Rescue Mission of El Paso, Inc., vs. Nicola et. al.), filed in the United States District Court, District of New Jersey, is on behalf of a class consisting of all persons or entities who purchased K-Sea securities during the period between January 30, 2009 and January 27, 2010, inclusive (the "Class Period"). This class action is brought under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, 15 U.S.C. Sections 78j(b) and 78t(a); and SEC Rule 10b-5 promulgated thereunder, 17 C.F.R. Section 240.10b-5.
If you are a shareholder who purchased K-Sea securities during the Class Period, you have until March 27, 2012 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Rachelle R. Boyle at firstname.lastname@example.org or 888-476-6529, x237 or Gustavo Bruckner, Esq. at email@example.com, 888-476-6529, ext. 302. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
K-Sea provides marine transportation for refined petroleum products to locations throughout the United States. 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.
The Pomerantz Firm, with offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Rachelle R. Boyle Pomerantz Haudek Grossman & Gross LLP firstname.lastname@example.org