Massey Energy Derivative Action Thrown Out

Law360, New York (October 2, 2009, 3:20 PM EDT) -- A judge has dismissed a shareholder derivative action against Massey Energy Co. that alleged the coal producer's directors breached their fiduciary duties by failing to ensure compliance with environmental and worker-safety laws.

Judge David Faber of the U.S. District Court for the Southern District of West Virginia granted the executives' motion to toss the complaint on Wednesday, ruling that the shareholder plaintiff had failed to demonstrate the futility of demanding action before resorting to litigation on behalf of Massey.

The derivative suit was filed by plaintiff...
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