Secured a $265 million all-cash settlement with Massey in connection with one of the largest U.S. coal mine disasters in more than 40 years.
On January 10, 2011, the Commonwealth of Massachusetts Pension Reserves Investment Trust (Massachusetts PRIT) was appointed lead plaintiff in In re Massey Energy Co. Securities Litigation. Judge Irene C. Berger in the Southern District of West Virginia approved Massachusetts PRIT's selection of Labaton Keller Sucharow to serve as co-lead counsel on behalf of purchasers of the publicly traded common stock of Massey Energy Company (Massey) between February 1, 2008, and July 27, 2010 (the class period). On March 11, 2011, Massachusetts PRIT filed a Consolidated Amended Complaint asserting claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
As alleged, during the class period Massey embarked on "safety improvement initiatives" to bolster public perception and present a new corporate image following a deadly fire at one of its coal mines in 2006. Massey revamped a program coined "S-1, P-2, M-3," which meant "safety first, production second, and measurement third." Massey repeatedly reassured investors that the company had put its sordid past behind it and "pull[ed] together to create a culture of safety."
However, Massey had two faces during the class period: a public face, shown by what defendants told investors about Massey's safety practices and improvement initiatives; and a private face, reflected in what they and others at Massey actually did and did not do with regard to safety.
On April 5, 2010, 29 miners died in an explosion at Massey's Upper Big Branch mine at Montcoal in Raleigh County, West Virginia. News of the explosion, subsequent criminal indictments, and Congressional testimony have revealed to the public that Massey had not become an "industry leader in safety" at all.
By July 27, 2010, Massey shares had hit a new low—representing a staggering decline that reduced Massey's market capitalization by more than $3 billion and caused massive losses to the class.
The defendants filed motions to dismiss the Consolidated Amended Complaint on April 25, 2011. Briefing on the motions to dismiss and other related motions was completed on July 25, 2011. On September 28, 2011, the court granted the plaintiffs' motion to partially lift the PSLRA discovery stay, allowing partial discovery by plaintiffs during the pendency of the defendants' motions to dismiss-a significant victory for the plaintiffs. On March 28, 2012, the court denied the defendants' motions to dismiss and granted the plaintiffs' related motion to strike certain exhibits submitted by the defendants in support of their motions to dismiss.
On December 9, 2013, lead plaintiff Massachusetts PRIT announced that it had reached a $265 million all-cash settlement with Alpha Natural Resources, Massey's parent company.
Settlement Hearing
A settlement hearing was held on June 4, 2014, at 9:00 am before the Honorable Irene C. Berger on at the Robert C. Byrd U.S. Courthouse, 110 North Heber Street, 3rd Floor Courtroom, Beckley, WV, at which time the court granted final approval to the settlement.
