Massey shareholders' case on hold until mid-April - WBOY - Clarksburg, Morgantown: News, Sports, Weather

Massey shareholders' case on hold until mid-April

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    Monday, August 8 2016 10:15 AM EDT2016-08-08 14:15:05 GMT

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    Thursday, November 3 2016 3:25 PM EDT2016-11-03 19:25:13 GMT

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    Lena Lunsford was taken into custody by authorities in Pinellas County, Fla., where she is awaiting extradition on a charge of death of a child by a parent by child abuse,  Lewis County, WV, Sheriff Adam Gissy told The Exponent Telegram.

  • Greenbrier County, WV, business owner admits pocketing money intended to pay employment taxes

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    Thursday, November 3 2016 1:59 PM EDT2016-11-03 17:59:28 GMT
    CHLOE DAWSON/ The State JournalCHLOE DAWSON/ The State Journal

    Brandon J. Black, 32, of Rainelle, WV, owned and operated a private security business in Lewisburg that provided services to businesses and individuals throughout West Virginia.

    Brandon J. Black, 32, of Rainelle, WV, owned and operated a private security business in Lewisburg that provided services to businesses and individuals throughout West Virginia.

  • Inmate at federal prison in Glenville, WV, admits assaulting CO

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    Wednesday, September 28 2016 9:53 AM EDT2016-09-28 13:53:20 GMT
    CHLOE DAWSON/ The State JournalCHLOE DAWSON/ The State Journal

    U.S. Attorney William J. Ihlenfeld II said Robert Fleming, 30, intended to harm the correctional officer in the June 2014 assault.

    U.S. Attorney William J. Ihlenfeld II said Robert Fleming, 30, intended to harm the correctional officer in the June 2014 assault.

A U.S. District judge has granted the government's motion to stay discovery until April in a federal class action lawsuit alleging Massey Energy Co.'s stock was artificially inflated and officials mislead the market about safety compliance.

Filed in April 2010 by the Commonwealth of Massachusetts Pension Reserves Investment Trust, the suit alleges Massey and several of its officials including former CEO Don Blankenship violated of the Securities Exchange Act of 1934.

The suit alleges officials inflated stock and lied about the safety of its operations.

Plaintiffs assert the price of Massey common stock plunged following information revealed after the April 2010 explosion at Upper Big Branch mine.

This decline caused "hundreds of millions of dollars in losses" to investors who purchased shares relying on information regarding safety, the suit states.

The United States made the motion Jan. 11 asking for a stay in discovery to keep the integrity of the investigation into the Upper Big Branch disaster.

The government asked to stay discovery until July 15 or the conclusion of the criminal investigation.

"Notably, the United States has been able to secure the cooperation of certain witnesses critical to the criminal investigation," the motion states. "Information provided by these witnesses has led the United States to obtain a large volume of additional documents and allowed it to identify other witnesses of significance of its investigation."

The motion states that the civil action and the criminal investigation "overlap heavily."

"Some individual civil defendants may be or may become subjects of the criminal investigation," the motion states. "When civil discovery goes forward, the civil parties will gain information not otherwise available to them, allowing them to anticipate in detail the direction of the criminal investigation."

U.S. District Judge Irene Berger granted in part this stay in a Jan. 17 order. In her order, Berger said the discovery stay entered on Sept. 28, 2011, continuing the matter until July 9, 2012 will continue until April 15 or the conclusion of the government's criminal investigation.

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