Massey Energy Settles Shareholder Lawsuit (November 14, 2005)
November 14, 2005
Massey Energy Co., the country’s fourth larges coal producer, has settled a derivative suit brought by its stockholders. A derivative suit is one brought by shareholders on behalf of the company. The shareholders of Massey Energy sued the company’s board of directors and other executives, alleging breach of fiduciary duty, misappropriation of information and corporate waste.
The settlement terms include the proposal by Massey of measures making it easier to amend company by-laws, add directors and lower the mandatory retirement age. Massey and its insurance company also agreed to pay the plaintiff’s legal fees, amounting to $2.5 million.