Massey shareholder lawsuit grows as CalSTRS joins legal action

The California State Teachers' Retirement System (CalSTRS) announced on Wednesday, June 9, 2010, that they have joined institutional investors Amalgamated Bank and Manville Trust as plaintiffs in a shareholder lawsuit filed in the Circuit Court of Kanawha County, West Virginia against against Massey Energy officers and directors, including Chairman Don Blankenship. Counsel for the plaintiffs are Motley Rice LLC and Charleston, WV attorney Andrew MacQueen.

The amended complaint was filed in connection with the Upper Big Branch Mine disaster that occurred on Monday, April 5, 2010, and alleges that Massey's officers and directors demonstrated consistent "failure to institute appropriate safety compliance oversight and monitoring." The release states that the plaintiffs have asked the court to "hold the individual defendants accountable for their misconduct, and thereby to prevent future disasters."

Read the CalSTRS press release.

Read more about the proceedings against Massey Energy's Board of Directors in Pensions & Investments.

Learn more about other shareholder derivative cases Motley Rice securities attorneys have handled for clients to impact corporate governance.