Faruqi & Faruqi, LLP Is Investigating Kirby Corporation on Behalf Of Its Shareholders (KEX)
Faruqi & Faruqi, LLP, a national law firm concentrating on investor rights, consumer rights and enforcement of federal antitrust laws, is investigating potential wrongdoing at Kirby Corporation (“Kirby” or the “Company”) (NYSE: KEX). The investigation focuses on whether certain officers and directors of Kirby participated in “related persons” transactions to the detriment of the Company.
Specifically, there have been a number of sizable “Related Person” transactions that Kirby has with its directors and its former Chairman of the Board, C. Berdon Lawrence. Kirby and L3P (a company owned by Lawrence) each own 50% of hunting and fishing facility known as “Hollywood Camp.” The camp is managed by L3P and during 2011 Kirby Corporation paid “$2,121,000 to Hollywood Camp for its share of facility expenses.” Kirby is also paying “55 Waugh, LP, a partnership owned 60% by Mr. Lawrence and his family, $1,491,000 for the rental of office space in a building owned by 55 Waugh, LP.” That’s on a 10-year lease that expires at the end of 2015; the proxy discloses that the aggregate amount of rent paid will be more than $6.29 million.
And Chairman Emeritus Lawrence isn’t the only insider who is benefitting from Kirby’s related party transactions. Director Richard Alario is the chairman of the board, president, and CEO of a separate company that 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’s vice president and controller, Ronald Dragg, owns half of a company that received $1,160,000 for shoreside facilities construction services in 2011.
If you are a current Kirby shareholder, and you would like to discuss your legal rights, contact us by calling Beth Keller toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
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