Massey Energy Stock Purchasers File Securities Fraud Class Action Lawsuit Against Massey Energy Over Alleged False and Misleading Statements About Coal Mine Safety
A securities fraud class action lawsuit was filed against Massey Energy on behalf of a class consisting of all those who purchased the common stock of Massey Energy between February 1, 2008 and May 16, 2010, inclusive (the “Class”) in the United States District Court for the Southern District of West Virginia, alleging that Massey Energy violated federal securities laws (Securities Exchange Act of 1934) by issuing false and misleading financial information to investors, according to class action lawsuit news reports.
The Massey Energy securities class action complaint alleges that Massey Energy claimed to be one of the safest coal mine operators in the industry, but in fact, safety at Massey Energy’s coal mines was allegedly sacrificed so that production goals could be met, and Massey had received undisclosed citations arising from uncorrected safety and other regulatory violations.
For instance, the Massey Energy class action lawsuit alleges that on April 5, 2010, an explosion rocked Massey’s Upper Big Branch mine (“UBB”) located in Montcoal in Raleigh County, West Virginia (owned by Massey subsidiary Performance Coal Company) killing 29 workers. The explosion was reportedly so powerful that it bent and twisted the steel rail tracks in UBB. In the days following the tragedy, numerous incidents of uncorrected safety violations at Massey’s mines came to light. UBB’s operations were allegedly cited by federal safety inspectors hundreds of times for dangerous violations of regulations—including the volatile buildup of explosive methane and coal dust. The U.S. Mine Safety and Health Administration (“MSHA”) reportedly cited UBB for a total of 515 safety violations in 2009. On April 30, 2010, it was disclosed that the Federal Bureau of Investigation (“FBI”) was investigating Massey for bribery of state and federal mine inspectors.
For more information on the Massey Energy securities fraud class action lawsuit, read the Massey Energy securities class action complaint.
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