Vice Chancellor Leo Strine blocked two shareholder lawsuits seeking to enjoin Massey Energy Co.’s $7.1 billion merger with Alpha Natural Resources. The ruling was issued less than 24 hours before Massey, a Richmond, Va., coal producer, was scheduled to vote on the merger, which was approved by the company’s board on June 1.
The suits were filed separately in Delaware’s Chancery Court, but consolidated in April 2011. Both suits were filed in response to the decrease in value of Massey’s stock after several disasters at its mines. In an April 2010 explosion, 29 workers were killed, while three separate accidents at Massey’s mines killed four miners between 2006 and 2008. The accidents cost the company $6.7 million in fines and penalties.
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