Massey Shareholders Challenge $7.1B Alpha Merger

Law360, New York (February 2, 2011, 6:35 PM EST) -- A group of Massey Energy Co. shareholders is challenging Alpha Natural Resources Inc.’s proposed $7.1 billion acquisition of the coal giant, saying the deal was fashioned largely to avoid derivative liability.

The shareholders, including several pension funds, filed a motion Tuesday in the Delaware Chancery Court to amend their existing derivative suit against the company, challenging the merger as an attempt to "extinguish derivative standing" of shareholders.

The lawsuit, first filed by the New Jersey Building Laborers Pension Fund and later consolidated with similar complaints, accuses...
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