CtW Investment Group Demands Independent Massey Board Investigation Into FBI Inquiry

WASHINGTON, May 3 /PRNewswire/ -- The CtW Investment Group today called upon the Massey Energy Company (NYSE: MEE) board of directors to establish a Special Committee of independent directors to investigate the facts and circumstances behind Friday's reports that the Company is under investigation by the FBI for potential criminal misconduct related to the April 5 explosion at Massey's Upper Big Branch mine, in which 29 miners lost their lives.  The full text of CtW's letter is below and more information can be found at www.ctwinvestmentgroup.com.

Dear Admiral Inman:

We call on the Massey Energy Company board of directors to immediately establish a Special Committee of independent directors to (1) investigate the facts and circumstances behind the April 30 report that Massey is under investigation by the Federal Bureau of Investigation for possible criminal conduct related to the April 5 explosion at its Upper Big Branch mine and (2) provide a preliminary report to shareholders at the company's May 18, 2010 annual meeting.  The Special Committee must be convened on behalf of shareholders and operate in a manner that is fully independent of management.

News of the FBI investigation into possible bribery of mine safety officials and criminal negligence for Massey's persistent failure to obey mine safety regulations has further destabilized investors' already shaken confidence in the company and its board.  Massey's share price fell 11% on April 30 and is down 33% in total since April 5, costing shareholders $1.6 billion.

As you know, the Massey board was already under acute investor, regulatory and public scrutiny for its lack of independence and for the company's systematic failure to comply with worker safety regulations leading up to the April 5 tragedy.  These are among the reasons we are opposing the election of directors Richard Gabrys, Dan Moore and Baxter Phillip at the company's annual meeting on May 18.  

In light of the escalating crisis, it is incumbent upon Massey's independent directors to assert independent leadership by immediately convening a Special Committee, comprised solely of independent directors, to investigate the events and circumstances leading to the FBI's inquiry, including a detailed investigation into any possible criminal wrongdoing.  As part of its mandate, the Special Committee shall, at a minimum:

• retain independent outside counsel and investigators, with no prior financial or other ties to the Company, its executives, or the board, to conduct this investigation;
• determine whether any of Massey's senior management were aware of or engaged in any criminal conduct;
• assess current procedures, policies, and practices to ensure they contain adequate safeguards to prevent future violations of state and federal laws;
• report to shareholders on its progress and preliminary findings at Massey's May 18, 2010 annual meeting of shareholders;
• take decisive action to hold accountable any Massey employee or affiliate found to have engaged in criminal conduct and/or violated company policy; and
• disclose its findings and recommendations in a written report to shareholders.

The gravity of these matters requires immediate board action.  We look forward to your prompt response.    

Sincerely,

William Patterson

Executive Director

Cc: Massey Energy Company Board of Directors

SOURCE CtW Investment Group