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Posted: Wednesday, July 23rd, 2014 1:49 PM HST

Matson finalizes $10M surcharge settlement

By Associated Press

HONOLULU (AP) Matson Inc. is paying $10 million to settle a lawsuit alleging the company misapplied fuel surcharges on military household goods shipped between the mainland and Hawaii or Guam.

The company announced Tuesday it signed a settlement agreement with the U.S. Department of Justice and Mario Rizzo, who filed the lawsuit in California on behalf of the federal government.

The shipments were paid for by the Department of Defense.

The Honolulu Star-Advertiser reports that under terms of the settlement, Matson will pay the government $9 million and Rizzo will receive about $2.6 million of that. Matson will also pay Rizzo $950,000 in legal expenses.

Matson says the settlement isn't an admission of liability.

Rizzo's lawsuit also includes Horizon Lines LLC as a defendant. That shipping company is fighting the suit.

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