Massachusetts officials announced a $265 million cash settlement related to a class action against the former Massey Energy Co., which is now doing business as Alpha Appalachia Holdings Inc.
The Massachusetts state pension fund, which served as lead plaintiff in the case on behalf of itself and other investors, brought the legal action in 2010 in response to the company's safety disclosures, alleging that certain misrepresentations artificially inflated the stock price, and the eventual disclosures and corresponding loss of value harmed investors.
The Bay State and other investors accused Massey of repeatedly lying about its safety record and artificially inflating stock prices between 2008 and 2010. They say shareholders were unaware of the long history of violations until after a southern West Virginia mine explosion killed 29 people in April 2010. Alpha bought the company one year later.
PRIM's share of the settlement will be proportional to its percentage of shares damaged in value as a result of the misstatements by Massey.