Reddy Ice management receives grand jury subpoenas

Fri Mar 14, 2008 11:12pm GMT
 
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LOS ANGELES, March 14 (Reuters) - Reddy Ice Holdings Inc (FRZ.N) management and employees have received grand jury subpoenas seeking information related to a Department of Justice-led anti-trust probe, according to a filing published on Friday.

The U.S. District Court for the Eastern District of Michigan issued the subpoenas, which the company received this month, the company said in its annual report, which was filed with the U.S. Securities & Exchange Commission.

Earlier this month, federal officials executed a search warrant on the company's Dallas corporate office in connection with possible anti-trust violations in the packaged ice industry, whose annual wholesale market is approximately $1.8 billion.

Reddy Ice, the largest manufacturer and distributor of packaged ice in the United States, said the subpoenas were part of a broader industry inquiry, with at least one other competitor also receiving one.

"Senior management is not aware that the Company has engaged in anti-competitive behavior, or other activities, which would violate the antitrust laws," Reddy said in the filing.

Reddy said a special committee formed to conduct an internal investigation had hired a special counsel to assist in its work.

The antitrust division of the Department of Justice is tasked with enforcing laws against trade-restraining activities such as price fixing, predatory business practices and anti-competitive mergers. (Reporting by Alexandria Sage; editing by Carol Bishopric)

 

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