12/08/2011 02:53:00 PM EST
Massey Gets Its Due
Back in the summer, there was a 'to-do' about the Massey
shareholder litigation. You'll remember that shareholders brought a derivative
suit against the directors for violations of their fiduciary duties in the
running of the company that ended with a disaster
at the Upper Big Branch mine in West Virginia. Twenty-nine miners lost
their lives. Chancellor Strine dismissed the case after Massey was
acquired by Alpha, refusing to allow the shareholders who had lost standing to
maintain the case. Although the shareholders' attorney were volubly upset at
the decision, Strine made it clear first, that there were still other avenues
to find justice for the victims, and second, the shareholders weren't the victims. They had
benefited from the directors' bad acts.
Now, we get word that the Federal Mine Safety and Health
Administration and the US attorney have reached settlements with Alpha,
Massey's successor. Alpha will pay $209 million in civil and criminal penalities to resolve its
liability with respect to the UBB disaster. This settlement includes
$46.5 million in payments to the families of the victims of the UBB disaster.
While this settlement resolved any corporate criminal liability, it left open
the possibility of personal criminal liability for executives of Massey.
This seems like a start.
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