Monday, September 10, 2007

Investor files second shareholder lawsuit against Massey

Investor files second shareholder lawsuit against Massey

September 10, 2007 6:24 PM

Massey Energy is facing another shareholder lawsuit.The latest lawsuit accuses the Richmond, Virginia-based coal company and 12 current and former officials, including Chief Executive Don Blankenship, of breaching their fiduciary duty and other misconduct.

Shareholder Vernon Mercier charges the defendants allowed Blankenship and other officers to engage in illegal and imprudent conduct that has hurt the company. And Mercier claims the defendants permitted Massey to violate environmental and mine safety laws.
Mercier's lead attorney did not immediately return a call. Massey spokesman Jeff Gillenwater said the company plans to fight the suit.

The federal lawsuit largely follows one filed last July in Kanawha Circuit Court by another shareholder. Both cite as examples a separate federal lawsuit accusing Massey of thousands of Clean Water Act violations and a record fine issued by the Mine Safety and Health Administration after a fatal fire at a Logan County mine last year.