The plaintiffs in a derivative lawsuit against Massey Energy filed an emergency petition with the West Virginia Supreme Court on Wednesday, May 25, 2011, asking the court to delay a shareholder vote on the proposed $7.1 billion sale of Massey Energy (NYSE: MEE) to Alpha Natural Resources (NYSE: ANR).
Quoted by NPR, securities lawyer Badge Humphries said the proposed merger undervalues Massey Energy and threatens the current shareholder litigation against the company's officers and directors, in particular Alpha's hiring of certain Massey executives, which "demonstrates clearly that Alpha has no intention of pursuing the derivative claims," said Humphries.
The shareholders' vote is scheduled for Wednesday, June 1, 2011.
Read the full article on the Massey merger vote in the Coal Tattoo blog.
To learn more about shareholder derivative cases and merger and acquisition litigation, contact our securities team by email or call 1.800.768.4026.