Management of EHS Risk Triggers Shareholder Lawsuit

The Charleston (WVa) Gazette has reported that a trust fund owning a small number of Massey Energy company shares has filed a lawsuit against the company.

The suit was filed by the Manville Personal Injury Trust, which owns just 1,000 shares of the company.  The lawsuit alleges that Massey has violated a 2008 settlement with Manville.  That settlement was reached after Manville sued Massey, its CEO and Board of Directors in 2007 alleging mismanagement

in the wake of repeated water pollution violations, large fines relating to the deaths of two miners in the 2006 Aracoma Mine fire, and a nearly $2 million verdict against Massey for firing a worker who complained about safety problems.

The current lawsuit accuses that the company’s Board members “consciously breached fiduciary duties owed to the company and its shareholders.”

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