I’ve decided to pare my holding in CSX due to a potiential legal setback regarding price fixing. The lawsuit dates back to 2007 and alleges that CSX and other US Freight railroads conspired to drive up shipping costs by fixing fuel surcharges. My original purchase of these shares was January 21, 2010 with a cost basis of $15.05, so I’m booking a 42% return.
The suit claims that billions of dollars were generated in extra revenue due to price fixing. U.S. District Judge Paul Friedman of the District of Columbia court certified a consolidated case involving eight shipping companies who claim they were “subjected to an endless string of rate increases” between 2003-08.
CSX said in a statement that its fuel surcharge practices “have always fully complied with the law”.
I still hold half of my original position in CSX.