12/9/2013 12:18 PM
by Rebecca Turco
BOSTON - Massachusetts officials announced a multimillion dollar settlement with a mining company for allegedly misrepresenting its safety record to artificially inflate its stock price.
Massachusetts officials said a $265 million settlement was reached with Alpha Appalachia Holdings Incorporated.
Officials said a class-action lawsuit was brought by multiple investors against the company formerly known as Massey Energy. The plaintiffs alleged that Massey told investors it adhered to property safety procedures, but the company had a culture of safety violations that lead to an explosion at the Upper Big Branch mine in 2010 that killed 29 people. Officials said the investigation uncovered hundreds of safety violations, causing the company's stock to plunge.