K-Sea Duped Investors On Obsolete Oil Tankers: Suit

Law360, New York (January 30, 2012, 7:03 PM EST) -- Oil barge operator K-Sea Transportation Partners LLC failed to tell investors in 2009 that an environmental law banning single-hull tankers had capsized its revenues, according to a putative class action launched Thursday in New Jersey federal court.

K-Sea artificially inflated its stock price by touting the market for its single-hull oil tankers, which make up nearly a fifth of the company’s total fleet, according to the lawsuit by Rescue Mission of El Paso Inc. In reality, demand for the vessels had rapidly declined due to the...
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