Wednesday, June 9, 2010

Massey Energy (NYSE:MEE) Sued Over Safety Record

Several institutional investors have joined forces to sue Massey Energy over its mine safety record which they allege led to the explosion at the Upper Big Branch mine in Virginia,

Plaintiffs in the suit include Amalgamated Bank, Manville Trust and CalSTRS.

The lawsuit is directed toward officers and directors of Massey Energy over the issue.

While the institutional investors cite the supposed 38 times the company had been cited for violations, an administrative law judge ruled on Tuesday there was no pattern of violations which would need to lead to stricter regulation at the Upper Branch mine.

The Federal Mine Safety and Health Review Commission judge ruled concerning the No. 1 mine that 10 of the 29 violations weren't of a serious nature, which would drop them below the required 25 needed to establish a pattern.

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