Business

Massachusetts announces $265m settlement in class-action lawsuit against mining company

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Massey Energy Co, which is now doing business as Alpha Appalachia Holdings Inc., has agreed to a $265 million settlement of a class-action lawsuit that alleged that the coal mining company misled investors, including the state’s pension fund, the Massachusetts Treasury and the Attorney General’s office said Monday. The Massachusetts state pension fund served as lead plaintiff in a case brought by many investors. The size of the pension fund’s share of the settlement has yet to be determined. The defendant did not admit to any wrong-doing in the settlement. According to the lawsuit, Massey made misrepresentations about its safety record that artificially inflated its stock price. Said Alpha, “We concluded that the judicious course of action was to resolve this now so we could put it behind us.”

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