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UBB families withdraw settlements

UPPER Big Branch mine owner Alpha Natural Resources says at least two of the families of miners k...

Donna Schmidt

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“The company had reached agreements in principle to settle with all twenty-nine families of the deceased miners as well as the two employees who were seriously injured. However, families of two of the deceased miners have recently withdrawn their prior agreements to settle, and settlement negotiations in those cases are ongoing,” the producer said in a US Securities and Exchange Commission filing Thursday.

One of the cases came to light on April 5, 2012, when one family filed a class action suit in Boone County Circuit Court.

“[It is] purportedly on behalf of the families that settled their claims prior to the mediation, alleging fraudulent inducement into a contract, naming as defendants Massey, [Alpha] and certain of its subsidiaries, the company’s CEO and the company’s board of directors,” it said.

Last June Alpha purchased Massey Energy and the UBB mine, where 29 workers were killed April 5, 2010.

Alpha announced April 4, the eve of the two-year anniversary of the blast, that it would permanently close the operation.

Alpha also said in the SEC filing that two of the seriously injured employees have filed personal injury claims in Boone County Circuit Court seeking damages.

Another 39 individuals have filed suits in Boone County Circuit Court and Wyoming County Circuit Court alleging emotional distress or personal injuries because of their proximity to the explosion.

The company requested in a motion April 19 to transfer the Wyoming County lawsuits to Boone County.

“On May 4, 2012, the Boone County Circuit Court ordered that the remaining personal injury and emotional distress claims continue to be mediated through July 6, 2012. Until that date, a stay was in place for all remaining cases until further order from the court,” officials said in the document.

Alpha and the US Department of Justice announced December 6 that they had entered a non-prosecution agreement whereby the company will pay in excess of $200 million for safety equipment, outstanding fines and restitution.

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