FRZ Reddy Ice Holdings Common Stock

Reddy Ice Holdings Inc. (FRZ) said Friday the Department of Justice will take no action against the company or its employees in connection with an investigation of the packaged ice industry.

Shares jumped 22% to $2.63 in recent trading. The stock has plunged this year as the country's No. 1 packaged ice seller has struggled with weak quarterly results and high leverage levels. Moody's Investors Service downgraded it to the brink of highly speculative territory in August.

Reddy Ice has been the subject of a Justice Department price-fixing probe by the agency for years. In November 2008, it disclosed the agency's civil fraud division was looking into whether the company violated the federal False Claim Act by getting "supracompetitive prices" from the federal government in connection with government contracts.

-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; matthew.jarzemsky@dowjones.com