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Massey Energy Co
Case 5:10-cv-00689 Document 83 Filed 03/11/11 Page 1 of 170 PageID #: 1266 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF WEST VIRGINIA AT BECKLEY In re MASSEY ENERGY CO. ) Civil Action No. 5: 1 0-cv-00689 SECURITIES LITIGATION ) ) CLASS ACTION ) This Document Relates To: ) The Honorable Irene C. BerBergerg ) ALL ACTIONS Jury Trial Demanded ) CONSOLIDATED AMENDED CLASS ACTION COMPLAINT FOR VIOLATIONS OF THE FEDERAL SECURITIES LAWS Case 5:10-cv-00689 Document 83 Filed 03/11/11 Page 2 of 170 PageID #: 1267 TABLE OF CONTENTS GLOSSARY v I. NATURE AND SUMMARY OF THE ACTION 13 A. Fallout from the 2006 Fire at Massey’s Alma No. 1 Mine 14 B. Massey Created a New Corporate Image to Lure Investors by Purporting to Implement Safety Improvement Initiatives 17 C. Notwithstanding its Purported Safety Improvement Initiatives, Massey Prioritized Production Over Safety During the Class Period, Culminating in the Disaster at Upper Big Branch 18 D. After the Explosion, Criminal and Civil Investigations Revealed Deceptive Tactics Used by Massey to Cover Up its Safety-Last Approach to Coal Mining During the Class Period 20 E. Massey Restates its Critical NFDL Safety Metric and Blankenship Resigns 23 II. JURISDICTION AND VENUE 25 III. PARTIES 25 A. Plaintiffs 25 B. Massey 26 C. The Officer Defendants 26 D. The Director Defendants 28 IV. FACTUAL BACKGROUND AND SUBSTANTIVE ALLEGATIONS 32 A. Massey and its Subsidiaries 32 B. Blankenship’s Rise to Power and Reign at Massey 35 C. Before the Class Period, Massey Was Embroiled in Criminal and Civil Litigation Arising from Unlawful Safety Practices in 2006 37 D. -
The Real Effects of Mandatory Dissemination of Non- Financial Information Through Financial Reports
Working Paper No. 16-04 The Real Effects of Mandatory Dissemination of Non- Financial Information through Financial Reports Hans B. Christensen University of Chicago Booth School of Business Eric Floyd Rice University Jones School of Business Lisa Yao Liu University of Chicago Booth School of Business Mark Maffett University of Chicago Booth School of Business All rights reserved. Short sections of text, not to exceed two paragraphs. May be quoted without Explicit permission, provided that full credit including notice is given to the source. This paper also can be downloaded without charge from the Social Science Research Network Electronic Paper Collection. The Real Effects of Mandatory Dissemination of Non-Financial Information through Financial Reports By HANS B. CHRISTENSEN, ERIC FLOYD, LISA YAO LIU and MARK MAFFETT* February 2016 Abstract: We examine the real effects of mandatory, non-financial disclosures, which require SEC-registered mine owners to disseminate their mine-safety records through their financial reports. These safety records are already publicly available elsewhere, which allows us to examine the incremental effects of disseminating information through financial reports. Comparing mines owned by SEC-registered issuers to those mines that are not, we document that including safety records in financial reports decreases mining-related citations and injuries by 11 and 13 percent, respectively, and reduces labor productivity by approximately 0.9 percent. Additional evidence suggests that increased dissemination, rather than unobservable factors associated with regulatory intervention, drive these effects. We also provide evidence that feedback effects from equity markets are a potential mechanism through which the dissemination of information leads to real effects. -
Approaching Coal Mine Safety from a Comparative Law and Interdisciplinary Perspective
Volume 111 Issue 1 Article 5 September 2008 Approaching Coal Mine Safety from a Comparative Law and Interdisciplinary Perspective Anne Marie Lofaso West Virginia University College of Law, [email protected] Follow this and additional works at: https://researchrepository.wvu.edu/wvlr Part of the Labor and Employment Law Commons, Mining Engineering Commons, and the Oil, Gas, and Mineral Law Commons Recommended Citation Anne M. Lofaso, Approaching Coal Mine Safety from a Comparative Law and Interdisciplinary Perspective, 111 W. Va. L. Rev. (2008). Available at: https://researchrepository.wvu.edu/wvlr/vol111/iss1/5 This Thinking Outside the Box: A Post-Sago Look at Coal Mine Safety is brought to you for free and open access by the WVU College of Law at The Research Repository @ WVU. It has been accepted for inclusion in West Virginia Law Review by an authorized editor of The Research Repository @ WVU. For more information, please contact [email protected]. Lofaso: Approaching Coal Mine Safety from a Comparative Law and Interdisc APPROACIIING COAL MINE SAFETY FROM A COMPARATIVE LAW AND INTERDISCIPLINARY PERSPECTIVE Anne Marie Lofaso* I. IN TROD UCTION ....................................................................................... I II. COAL MINE SAFETY CONCERNS ......................................................... 2 A. Overview of U.S. Coal Mine Industry's Safety Issues............. 2 B. Case Study: Sago ................................................................. 3 C. Questions Raised in Sago 's Aftermath .................................. -
It's About Time: a Proposal to Establish A
NOTES IT’S ABOUT TIME: A PROPOSAL TO ESTABLISH A SPECIALIZED INTERNATIONAL AGENCY FOR COAL MINER SAFETY AND HEALTH Mining is inherently high risk and will always remain so as long as it is done by people. All underground mines face the same problems. It takes eternal vigilance to stay on top of it.1 I. INTRODUCTION Traditionally, underground coal mining has posed significant risks to workers’ health and safety.2 Through continued improvements in technologies, new capital investments, and continuously improved training, some dangers have been controlled.3 However, without a “safety net” including assessments and control of risks, “accidents and occupational diseases can and do occur.”4 Looking back at the recent coal mining disasters across the world, it is clear that uniform global safety and health standards for coal mining are imperative. Even though coal mining claims the lives of thousands of human beings across the world each year, it is a fundamental energy source that cannot be abandoned in the foreseeable future.5 The global 1. Charles Hutzler, World’s Coal Use Carries Deadly Cost, ASSOCIATED PRESS, Nov. 11, 2007 (quoting Dave Feickert, an independent mine safety consultant based in New Zealand, who has worked extensively in China). 2. International Labour Organization, Sector Meetings: Meeting of Experts on Safety and Health of Coal Mines, May 8-13, 2006, http://www.ilo.org/public/english/dialogue/sector/techmeet/meshcm06/index.htm. 3. Id. 4. Id. 5. In 2006, there were seventy-three total mining deaths in the United States, forty-seven of which were related to coal mining. -
Alpha Complaint
Case 2:14-cv-11609 Document 1 Filed 03/05/14 Page 1 of 32 PageID #: 1 IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF WEST VIRGINIA CHARLESTON DIVISION UNITED STATES OF AMERICA; the STATE OF WEST ) VIRGINIA by and through the WEST VIRGINIA ) DEPARTMENT OF ENVIRONMENTAL PROTECTION; the ) PENNSYLVANIA DEPARTMENT OF ENVIRONMENTAL ) PROTECTION; and the COMMONWEALTH OF ) KENTUCKY by and through the KENTUCKY ENERGY ) AND ENVIRONMENT CABINET ) ) Plaintiffs, ) ) v. ) ) Civil Action No. ________2:14-11609 ALPHA NATURAL RESOURCES, INC.; ALPHA ) APPALACHIA HOLDINGS, INC.; ALEX ENERGY, INC.; ) ALPHA PA COAL TERMINAL, LLC; AMFIRE MINING ) COMPANY, LLC; ARACOMA COAL CO., INC.; ) COMPLAINT BANDMILL COAL CORP.; BELFRY COAL CORP.; BIG ) BEAR MINING CO.; BROOKS RUN MINING COMPANY, ) LLC; BROOKS RUN SOUTH MINING LLC; CLEAR FORK ) COAL CO.; CUMBERLAND COAL RESOURCES, LP; ) DELBARTON MINING CO.; DICKENSON-RUSSELL ) COAL COMPANY, LLC; DUCHESS COAL CO.; EAGLE ) ENERGY, INC.; ELK RUN COAL CO., INC.; EMERALD ) COAL RESOURCES, LP; ENTERPRISE MINING ) COMPANY, LLC; GOALS COAL CO.; GREYEAGLE ) COAL CO.; HARLAN RECLAMATION SERVICES LLC; ) HERNDON PROCESSING CO., LLC; HIGHLAND MINING ) CO.; INDEPENDENCE COAL COMPANY, INC.; JACKS ) BRANCH COAL CO.; KANAWHA ENERGY CO.; KEPLER ) PROCESSING CO., LLC; KINGSTON MINING, INC.; ) KINGWOOD MINING CO., LLC; KNOX CREEK COAL ) CORP.; LITWAR PROCESSING CO., LLC; MARFORK ) COAL CO.; MARTIN COUNTY COAL CORP.; NEW ) RIDGE MINING CO.; OMAR MINING CO.; PARAMONT ) COAL COMPANY VIRGINIA, LLC; PAYNTER BRANCH ) MINING, -
Will Massey Energy Company Suffer Severe Penalties in Clean Water Act Case?
A BNA, INC. DAILY ! ENVIRONMENT REPORT Reproduced with permission from Daily Environment Report, Vol. 2007, No. 186, 09/26/2007, pp. B1 - B6. Copyright 2007 by The Bureau of National Affairs, Inc. (800-372-1033) http://www.bna.com ENFORCEMENT CLEAN WATER ACT When Wall Street analysts calculated the statutory maximum civil penalty in a Clean Wa- ter Act case against Massey Energy Company and several affiliated companies, a great deal of negative ‘‘buzz’’ was generated because of the potential magnitude of the fine, according to the author of this article. However, the author says the courts have been very reluctant to impose statutory maximum penalties. In this article, the author provides background on the issues in the case and, based on his experience as a consultant in these matters, offers his view of how the penalty actually will be calculated. Will Massey Energy Company Suffer Severe Penalties in Clean Water Act Case? BY ROBERT H. FUHRMAN conclusion. Even assuming the government is success- ful in its assertion of liability, my opinion, which I ex- all Street analysts and media reports have sug- plain in detail below, is that the likely penalty is in the gested Massey Energy Company faces a poten- range of $1.5 million to $7 million if this case is adjudi- W tial liability of $2.4 billion for alleged violations cated. of the Clean Water Act.1 I was retained by the company to assess its liability and have reached a far different Case Background 1 This figure appeared in several publications, including On May 10, 2007, in the U.S. -
Consent Decree: United States of America V. Massey Energy Company, Et Al., Civil Action No. 2:07-0299
IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF WEST VIRGINIA ) UNITED STATES OF AMERICA, ) ) Plaintiff, ) ) Civil Action No. 2:07-0299 ) Hon . John T . Copenhaver, Jr. MASSEY ENERGY COMPANY, et al ., ) ) CONSENT DECREE Defendants . ) ) TABLE OF CONTENTS I . BACKGROUND . ..... .... .... ... .. .. .... ..... .... ... ... ... ..... ... .-1 II . JURISDICTION AND VENUE . ..... .... .. .. ... .... .... .. .... -2 III . APPLICABILITY . ..... .... .. ... .. ... ... .... ... ... .. ... .... ... ... -2 IV . DEFINITIONS . ..... .... .... ..... ... .. .. .:... ..... ... ... ... .... ..... .... -3 V. CIVIL PENALTY ... ... ... .. .... ... ... ... .... .... ... .... .... ... ...... .... -7 VI . COMPLIANCE REQUIREMENTS . ... .... ... .... ..... ... ... .... ... .. .... .... -8 VII . INJUNCTIVE RELIEF . .... ..... ... ... .. ... ..... .... ..... ... ... ..... -12 VIII . ADDITIONAL INJUNCTIVE RELIEF .. ... ... ... .. ... ... .. .. .... -20 IX . REPORTING REQUIREMENTS . .... .... .... .... .... .... ..... .... ... .... .... -21 X. STIPULATED PENALTIES . ..... .... .. ... ..... .... ... .. ... .... .... -27 XI . FORCE MAJEURE . ...... ..... ... ... ... ... .. .. .... ...... .... :.. ..... .... .-31 XII . DISPUTE RESOLUTION . ...... ... .... ... .. ... .. ... ... .... .... .. .. -34 XIII . INFORMATION COLLECTION AND RETENTION ... .... ....... ..... ..... ., . -37 XIV. EFFECT OF SETTLEMENT/RESERVATION OF RIGHTS . ....... .... .... ... -39 XV. COSTS . .... .. .... ..... ... .... .... ...... ... .... .... ... -41 XVI. NOTICES -
Robert C. Byrd Miner Safety and Health Act of 2010
111TH CONGRESS REPT. 111–579 " ! 2d Session HOUSE OF REPRESENTATIVES Part 1 ROBERT C. BYRD MINER SAFETY AND HEALTH ACT OF 2010 JULY 29, 2010.—Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. GEORGE MILLER of California, from the Committee on Education and Labor, submitted the following R E P O R T together with SUPPLEMENTAL AND MINORITY VIEWS [To accompany H.R. 5663] [Including cost estimate of the Congressional Budget Office] The Committee on Education and Labor, to whom was referred the bill (H.R. 5663) to improve compliance with mine and occupa- tional safety and health laws, empower workers to raise safety con- cerns, prevent future mine and other workplace tragedies, establish rights of families of victims of workplace accidents, and for other purposes, having considered the same, report favorably thereon with an amendment and recommend that the bill as amended do pass. The amendment is as follows: Strike all after the enacting clause and insert the following: SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) SHORT TITLE.—This Act may be cited as the ‘‘Robert C. Byrd Miner Safety and Health Act of 2010’’. (b) TABLE OF CONTENTS.—The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. References. TITLE I—ADDITIONAL INSPECTION AND INVESTIGATION AUTHORITY Sec. 101. Independent accident investigations. Sec. 102. Subpoena authority and miner rights during inspections and investigations. Sec. 103. Designation of miner representative. Sec. 104. Additional amendments relating to inspections and investigations. -
Evaluating the Effectiveness of MSHA's Mine Safety and Health
EVALUATING THE EFFECTIVENESS OF MSHA’S MINE SAFETY AND HEALTH PROGRAMS HEARING BEFORE THE COMMITTEE ON EDUCATION AND LABOR U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED TENTH CONGRESS FIRST SESSION HEARING HELD IN WASHINGTON, DC, MAY 16, 2007 Serial No. 110–38 Printed for the use of the Committee on Education and Labor ( Available on the Internet: http://www.gpoaccess.gov/congress/house/education/index.html U.S. GOVERNMENT PRINTING OFFICE 35–186 PDF WASHINGTON : 2007 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate 0ct 09 2002 16:58 Mar 13, 2008 Jkt 000000 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 G:\DOCS\110TH\FC\110-38\35186.TXT HBUD1 PsN: DICK COMMITTEE ON EDUCATION AND LABOR GEORGE MILLER, California, Chairman Dale E. Kildee, Michigan, Vice Chairman Howard P. ‘‘Buck’’ McKeon, California, Donald M. Payne, New Jersey Ranking Minority Member Robert E. Andrews, New Jersey Thomas E. Petri, Wisconsin Robert C. ‘‘Bobby’’ Scott, Virginia Peter Hoekstra, Michigan Lynn C. Woolsey, California Michael N. Castle, Delaware Rube´n Hinojosa, Texas Mark E. Souder, Indiana Carolyn McCarthy, New York Vernon J. Ehlers, Michigan John F. Tierney, Massachusetts Judy Biggert, Illinois Dennis J. Kucinich, Ohio Todd Russell Platts, Pennsylvania David Wu, Oregon Ric Keller, Florida Rush D. Holt, New Jersey Joe Wilson, South Carolina Susan A. Davis, California John Kline, Minnesota Danny K. Davis, Illinois Cathy McMorris Rodgers, Washington Rau´ l M. -
Massey Energy Company 2007 Annual Report Any X 26765
Massey Energy Company Energy Massey 2007 MAssEy EnERgy CoMpAny Annual Report p.o. BoX 26765 RICHMonD, VA 23261 (804) 788-1800 Meet the energy behind massey energy Massey energy coMpany 2007 annual report finanCial highlights shareholder information Year Ended December 31, (In millions, except per share, per ton Common Stock Information Comparison of Cumulative Total Return for the and number of employees amounts) 2007 2006 2005 2004 2003 at February 15, 2008, there were 80,491,644 shares Period December 31, 2002 to December 31, 2007 outstanding and approximately 6,800 shareholders $ 800 Consolidated Statement of Income Data of record of Massey energy’s common stock. $ 700 produced coal revenue $ 2,054.4 $ 1,902.3 $ 1,777.7 $ 1,456.7 $ 1,262.1 Registrar and Transfer Agent $ 600 Total revenue SM 2,413.5 2,219.9 2,204.3 1,766.6 1,571.4 Wells Fargo Shareowner Services $ 500 Income (Loss) before interest and Shareowner relations Department $ 400 income taxes 179.7 111.0 (20.9) 46.2 (17.5) p.o. Box 64854 Income (Loss) before cumulative effect St. paul, Mn 55164-0854 $ 300 of accounting change 94.1 41.6 (101.6) 13.9 (32.3) For change of address, lost dividends or lost stock $ 200 net income (loss) 94.1 41.0 (101.6) 13.9 (40.2) certificates, write or telephone: $ 100 Income (Loss) per share – Basic Wells Fargo Bank, n.a. $ 0 p.o. Box 64874 Income (Loss) before cumulative effect 12/02 12/03 12/04 12/05 12/06 12/07 of accounting change $ 1.17 $ 0.51 $ (1.33) $ 0.18 $ (0.43) St. -
Response of Omar Mining Company, A.T
NORMA ACORD, ::<L 'RORY L. PERRY II, CLERK West Virginia Residents, f SUPREME COURT OF APPEALS Plaintiffs and Class Representatives, ~~l,~,j·:' OF WEST VIRGINIA Plaintiff/Petitioner, v. Appeal No. ______ Civil Action No. 04-C-lSl-0 CO LANE COMPANY, a West Virginia Circuit Court of Logan County corporation, individually and as a successor-in-interest to Cole & Crane Real Estate Trust; COAL & CRANE REAL ESTATE TRUST, a West Virginia trust; LOGAN COUNTY BOARD OF EDUCATION, a West Virginia public body; WEST VIRGINIA COAL & COKE COMPANY, a West Virginia corporation, OMAR MINING COMPANY, a West Virginia corporation, individually and as successor-in-interest to West Virginia Coal & Coke Company; A.T. MASSEY COAL COMPANY, a West Virginia corporation, individually and as a successor-in-interest to West Virginia Coal & Coke Company; MASSEY ENERGY COMPANY, a Virginia corporation, individually and as a successor-in-interest to West Virginia Coal & Coke Company; RICHARD FRY, a West Virginia resident, individually, Defendants/Respondents. RESPONSE OF OMAR MINING COMPANY, A.T. MASSEY COAL COMPANY, INC., AND MASSEY ENERGY COMPANY TO PETITION FOR APPEAL Daniel L. Stickler (WVSB # 3613) Jonathan L. Anderson (WVSB # 9628) JACKSON KELL Y PLLC 1600 Laidley Tower Charleston, West Virginia 25301 (304) 340-1000 Counsel for Respondents Omar Mining Company, A. T. Massey Coal Company, Inc., and Massey Energy Company {C1863023.1 } TABLE OF CONTENTS I. INTRODUCTION ............................................................................................................... 1 II. KIND OF PROCEEDING AND NATURE OF RULING BELOW .................................. .2 III. STATEMENT OF FACTS .................................................................................................. 3 A. Historical Background ............................................................................................. 3 1. 1920-1954: Coal & Coke's Operations in the Island Creek Valley ............. 3 2. -
Winds of Change the Newsletter of The
Winds of Change the newsletter of the June 2010 Ohio Valley Environmental Coalition E Huntington, WV www.ohvec.org Victory! Passing Stronger Cemetery Legislation by Robin Blakeman operations and other land-altering After at least three years of activities. trying to more effectively protect During our first three years cemeteries, we finally did it! This year, of work, four separate bills were at OVEC’s urging, citizens and introduced; none resulted in new members of the faith community joined legislation, but all increased elected forces in lobbying for the passage of officials’ awareness of the need to HB 4457, which improves cemetery protect cemeteries. protection throughout West Virginia. We built allies within faith Our efforts to protect community groups and other cemeteries were sparked by an organizations, such as genealogical increasing number of reports of societies and the WV Perpetual cemetery desecration and blocked Care Cemetery Board. Prominent access to family cemeteries. representatives from Catholic, Many of the access and Episcopalian, Methodist, Unitarian desecration complaints are related to and Presbyterian faith groups lent mountaintop removal operations, but support. For the past two years, there are statewide problems with the WV Council of Churches has protecting cemeteries from natural gas endorsed the need for improved cemetery protection Anderson “Devil Anse” legislation in its legislative Supreme Court Pilot Project Approved Hatfield’s grave is just one policy guide. of hundreds in WV by Carol Warren During the 2009 overshadowed by MTR Coalition partners of WV Citizens for Clean WV legislative interims, a Elections were very encouraged when Governor Manchin mining operations (center announced in his State of the State address that he planned background).