Court Tosses Suit Alleging K-Sea Transportation Misled Investors

The U.S. District Court for the District of New Jersey June 14 dismissed a securities class action suit alleging that marine transport concern K-Sea Transportation Partners LP misled investors about a shifting regulatory environment and engaged in various accounting improprieties (Rescue Mission of El Paso Inc. v. K-Sea Transportation Partners LP).

The plaintiffs “were aware of the risks when investing in K-Sea. The economy failed to improve and K-Sea’s business did not improve. Plaintiffs cannot now claim they were misled,” the court declared in an unpublished ruling by Judge William Walls.

The court said that K-Sea, based out ...