Massey Energy (NYSE: MEE) shareholders filed a class action lawsuit in the United States District Court for the Southern District of West Virginia on behalf of investors who purchased Massey Energy securities between October 28, 2009 and April 21, 2010. If you wish to serve as lead plaintiff, you must move the Court no later than June 29, 2010.
The class action lawsuit charges Massey and certain of its officers and directors with making false and misleading statements to shareholders in violation of the Securities Exchange Act of 1934. Massey told investors it was one of the safest mine operators in the industry, regularly touting its safety achievements and telling shareholders that safety was its number one priority. But Massey had received many undisclosed citations arising from serious uncorrected safety and other regulatory violations.
On April 5, 2010, an explosion at the Upper Big Branch mine near Montcoal, West Virginia, resulted in twenty-nine miners losing their lives in the deadliest U.S. mine accident in nearly 40 years. In the days following the tragedy, hundreds of incidents of uncorrected safety violations at Massey’s operations came to light. On April 21, 2010, eight Massey mines were the target of surprise inspections by federal mine safety officials.
The FBI is now looking into the possible bribing of officials at the Mine Safety and Health Administration and possible criminal negligence at Massey, following the April 5 explosion.
Massey’s stock has plunged following the explosion and subsequent revelations regarding Massey’s safety violations.
The class action lawsuit seeks to recover damages for shareholders who purchased Massey securities between October 28, 2009 and April 21, 2010. If you own Massey Energy stock and would like to participate in the class action or have questions about your legal rights, please call 1-619-573-1700.