K-Sea Transportation

Pomerantz has been appointed Co-Lead Counsel in the securities class action lawsuit against K-Sea Transportation (“K-Sea” or the “Company”) (NYSE: KSP), 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. §§ 78j(b) and 78t(a); and SEC Rule 10b-5 promulgated thereunder, 17 C.F.R. § 240.10b-5.

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.