Massey Energy Parent To Pay $265M To Exit Shareholder Suit

Law360, Los Angeles (December 9, 2013, 4:14 PM EST) -- The parent of Massey Energy Co. agreed to pay $265 million to settle a class action alleging Massey misrepresented its safety record to inflate stock prices, which plummeted following the worst U.S. mining disaster in more than 40 years, Massachusetts officials announced Monday.

Shareholders, led by Massachusetts’ state pension fund, claimed Massey Energy Co. violated federal securities laws by trumpeting its commitment to safety while its mines had hundreds of safety violations and caused investors to lose money when stock prices fell after a 2010 explosion...
To view the full article, register now.