April 23, 2010

Motley Rice attorney Badge Humphries discusses court proceedings against Massey Energy Board of Directors

Motley Rice attorney Badge Humphries speaks with NPR's West Virginia member station about the order issued on April 22, 2010 by West Virginia's Circuit Court of Kanawha County initiating civil contempt proceedings against Massey Energy Company's Board of Directors. The order granted a motion filed on April 16, 2010 by Motley Rice and Charleston, WV attorney Andrew McQueen on behalf of a Massey Energy shareholder to initiate "show cause" proceedings as to why the Board should not be held in civil contempt for violation of the settlement terms of a 2007 shareholder derivative suit. Those terms ensured compliance with mine safety and environmental law, rules and regulations.

On Monday, April 5, 2010, a massive explosion occurred near Montcoal, West Virginia at Massey Energy Company's Upper Big Branch mine. Following massive rescue operations that took place over several days, it was discovered that none of the 29 miners trapped in the explosion survived, making the event the deadliest coal mining disaster since 1970. The explosion is assumed to have been caused by an accumulation of both coal dust and methane gas, and the West Virginia Office of Miners Health, Safety & Training is currently investigating the explosion in addition to Massey Energy Company and its operation of approximately 70 other underground coal mines in the United States. 

Read about  the shareholder derivative lawsuit also filed on behalf of the same Massey Energy shareholder client against Massey Energy officers and directors for post-May 20, 2008 conduct. 

Learn more about other derivative cases Motley Rice has handled for clients to impact corporate governance.