2014 Government Regulations & Business Summit
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BOSTON – Massey Energy Co. agreed to a $265 million settlement of a class-action lawsuit that alleged that the coal-mining company misled investors, including Massachusetts’ pension fund, The Associated Press reported last week.
Massachusetts’ state pension fund served as lead plaintiff in a case brought by several other investors. The AP said the size of the pension fund’s share of the settlement has yet to be determined.
Massey did not admit to any wrongdoing in the settlement. The lawsuit alleged that the company made misrepresentations about its safety record that artificially inflated its stock price. When a 2010 mine explosion killed 29 employees, an ensuing investigation uncovered hundreds of safety violations that caused the company’s stock to lose value.
Mass. Treasurer Steven Grossman said in a statement that “businesses need to be open and transparent to the people who invest in them, and this case sends a clear message that misrepresentations and bad business practices will not be tolerated.” •