May 28, 2010
Labaton Sucharow LLP Files Class Action Lawsuit Against Massey Energy Company
NEW YORK (May 28, 2010) – Labaton Sucharow LLP filed a class action lawsuit on behalf of an institutional investor in the United States District Court for the Southern District of West Virginia on behalf of purchasers of the publicly-traded securities of Massey Energy Company (“Massey”) between February 1, 2008 and May 16, 2010 (the “Class Period”).
The complaint charges Massey and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Massey is one of the largest coal producers in the United States and the largest coal company in Central Appalachia, its primary region of operation, in terms of tons produced and total coal reserves.
If you are a member of this class you can view a copy of the complaint and join this class action online at http://www.labaton.com/en/cases/Massey.cfm.
The complaint alleges that during the Class Period, Massey claimed to be one of the safest mine operators in the industry, regularly touting its safety achievements and telling investors that safety was its number one priority. In fact, safety at Massey’s mines was repeatedly sacrificed so that aggressive production goals could be met, and Massey had received numerous undisclosed citations arising from serious uncorrected safety and other regulatory violations. Then, on April 5, 2010, an explosion at the Upper Big Branch mine in Montcoal, West Virginia, revealed the falsity of Massey's repeated representations about the safety of its mining operations when 29 miners lost their lives in the deadliest U.S.mine accident in nearly 40 years. In the days following the tragedy, hundreds of incidents of uncorrected safety violations at Massey’s mines came to light. The price of Massey common stock fell following the explosion and has continued to fall due to the subsequent revelations of Massey’s safety violations. 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. As a result of this news, Massey stock fell $4.53 per share, or 11 percent. On May 14, 2010, federal prosecutors from the U.S. Attorney’s Office for the Southern District of West Virginia confirmed that Justice Department officials are investigating possible “willful criminal activity” by Massey subsidiary Performance Coal and its “directors, officers, and agents” for alleged violations of federal mine safety regulations at UBB between 2007 and 2010. As a result of this news, Massey stock fell from $37.00 on May 14, 2010 to a new low of $33.29, or 10 percent, on May 17, 2010.
If you purchased Massey shares during the Class period you may move to serve as a Lead Plaintiff. Lead Plaintiff motion papers must be filed in the United States District Court for the Southern District of West Virginia no later than June 28, 2010. A lead plaintiff is a court-appointed representative for absent class members. You do not need to seek appointment as lead plaintiff to share in any class recovery in this action.If you are a class member and there is a recovery for the class, you can share in that recovery as an absent class member. You may retain counsel of your choice to represent you in this action. If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, you may contact one of our representatives or Alan I. Ellman, Esq. of Labaton Sucharow, at 800-321-0476 or (212) 907-0700, or via email at firstname.lastname@example.org.