Patriot Coal Execs Hid Costs Of $45M Cleanup, Investor Says

Law360, New York (September 24, 2012, 2:48 PM EDT) -- Two executives at bankrupt Patriot Coal Corp. were hit with a putative shareholder class action Friday over allegedly false statements the company made regarding a $45 million court-ordered cleanup of selenium discharges in two West Virginia coal mines.

In a complaint filed in Missouri federal court, shareholder Ernesto Espinoza accused ex-CEO Richard M. Whiting and Chief Financial Officer Mark N. Schroeder of hiding the true state of the company's finances, inflating its stock price and causing in investor losses when the truth was finally revealed....
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