Foundation Coal Holdings, Inc. Investor Lawsuit alleges unfair takeover
Class Action Lawsuit on behalf of certain current investors of Foundation Coal Holdings, Inc. (Public, NYSE:FCL) over possible breach of fiduciary duty – Contact the Shareholders Foundation, Inc. at mail@shareholdersfoundation.com
SAN DIEGO, CA ( www.ShareholdersFoundation.com ) - An angry investor has filed a proposed securities class action lawsuit in the Circuit Court of the State of Maryland on behalf of current investors of Foundation Coal Holdings, Inc. (Public, NYSE:FCL), who purchased their shares before Tuesday, May 12, 2009, over alleged breaches of fiduciary duty by the board of directors of Foundation Coal.
If you currently hold Foundation Coal Holdings, Inc. (Public, NYSE:FCL) and purchased these shares before Tuesday, May 12, 2009, you have certain options and you should contact the Shareholders Foundation, Inc immediately at:
According to the complaint the plaintiff alleges that Foundation Coal and its directors breached their fiduciary duties to Foundation Coal's shareholders and that certain disclosures in the Registration Statement are misleading and/or incomplete. Alpha Natural Resources announced it plans to buy rival Foundation Coal Holdings for about $1.4 billion in an all-stock deal that would create the nation's third-largest coal producer. Under the terms of the buyout, Foundation Coal Holdings investors will receive 1.084 shares of the new company for each share held (about $32.73 per share), and Alpha shareholders would own the majority with about 59 percent of the combined companies. According to the investigation, as recently as July 2008, however, FCL stock was trading at over $88.88 per share. Foundation Coal operates a group of 12 individual coal mines located in Wyoming, Pennsylvania and West Virginia. Foundation Coal Holdings, Inc. (NYSE:FCL) announced that its Central Appalachian affiliates are adjusting production levels in order to match current product demand. Foundation Coal announced that its affiliate Kingston Resources is moderating planned production at the Kingston mine to reflect decreased shipments year-to-date and reduced demand for the balance of the year and that Foundation’s affiliated surface mining operations are reducing planned production due to reduced demand in current market conditions. As a result of the revised production levels, so Foundation Coal, the workforce has been reduced by approximately 60 employees. Foundation Coal Holdings, Inc. (Public, NYSE:FCL) is located in Linthicum Heights, MD and had $1.48966billion in total revenue with $32.16million in 2007 and $1.69013billion in total revenue with $11.55million in net income in 2008. Shares of Foundation Coal Holdings, Inc (NYSE: FCL) closed on May 12, 2009 after the announcement at $28.06 per share, down from a 52weekHigh of $89.72 per share. Foundation Coal Holdings, Inc. (NYSE:FCL) recently announced that it has reached a settlement agreement ending litigation between Foundation Coal Holdings, Inc and metallurgical coal customer, ArcelorMittal. Under the terms of the agreement, ArcelorMittal has agreed to take delivery of significant volumes of metallurgical coal from the Kingston mine in 2009 and future periods.
If you currently hold Foundation Coal Holdings, Inc. (Public, NYSE:FCL) and purchased these shares before Tuesday, May 12, 2009, you have certain options and you should contact the Shareholders Foundation, Inc immediately at:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423 -
92108 San Diego
Tel:+1-(858)-779-1554
Fax:+1-(858)-605-5739 mail@shareholdersfoundation.com www.ShareholdersFoundation.com
_____________________________________________________________________________________
Advertising. The Shareholders Foundation, Inc. is an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Any statements made in press releases, emails or over the phone by any member or personnel employed by Shareholders Foundation, Inc. or by third parties related to the Shareholders Foundation, Inc. is provided for research and guidance purposes only and are not legal advices. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
