An investigation on behalf of investors in shares of Kirby Corporation (NYSE:KEX) was announced concerning potential breaches of fiduciary duties by certain officers and directors at Kirby Corporation (NYSE:KEX). in connection with certain “related persons” transactions to the detriment of Kirby Corporation and its shareholders.
Investors who purchased shares of Kirby Corporation (NYSE:KEX) and currently hold those NYSE:KEX shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Kirby Corporation (NYSE:KEX)) concerning whether certain statements of Kirby Corporation’s business, its prospects and its operations were materially false and misleading at the time they were made. Specifically, the investigation concerns whether certain directors and officers at Kirby Corporation (NYSE:KEX) breached their fiduciary duties.
According to the investigation there been a number of sizable so called “Related Person” transactions that Kirby Corporation has with its directors and its former Chairman of the Board, C. Berdon Lawrence. Kirby Corporation and L3 Partners, LLC (a company owned by C. Berdon Lawrence) each own 50% of hunting and fishing facility known as “Hollywood Camp”, which is managed by L3 Partners, LLC.
According to a media report Kirby Corporation paid “$2,121,000 to The Hollywood Camp for its share of facility expenses” and paid $1,491,000 to 55 Waugh, LP, a partnership owned 60% by Mr. Lawrence and his family, for the rental of office space of a 10-year lease that expires at the end of 2015 in a building owned by 55 Waugh, LP. The aggregate amount of rent paid will be more than $6.29 million.
The media report says that Director Richard Alario, who is the chairman of the board, president, and CEO of a separate company, received $7,978,000 for oilfield service equipment, parts and service last year, Vice President of Legal, Amy Husted, is married to an attorney whose firm received $483,000 in legal fees last year, and a brother-in-law of Kirby Corp.’s vice president and controller, Ronald Dragg, owns half of a company that received $1,160,000 for shoreside facilities construction services in 2011.
The media report said that Kirby Corporation is example of a company whose board is approving deals that benefit its own members and company executives.
Kirby Corporation reported that its annual Revenue rose from $1.08billion in ’09 to $1.85billion in 2011 and its Net Income increased from $125.94million for 2009 to $183.03million in 2011.
Shares of Kirby Corporation (NYSE:KEX) rose from under $20 in March ’09 to as high as $70 in January 2012.
NYSE:KEX stocks closed on Friday, March 23, 2012, at $66.89 per share.
Those who purchased shares of Kirby Corporation (NYSE:KEX) and currently hold those Kirby Corporation (NYSE:KEX)) shares, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North – Suite 423
92108 San Diego