JUNE 2011 - After winning additional disclosures and minor changes to the terms of the deal, shareholders agreed to end their class action.
MAY 2011 - An investor in International Coal Group, Inc. (NYSE:ICO) shares filed a lawsuit in State Court in effort to stop the planned acquisition of International Coal Group by Arch Coal, Inc.

According to the complaint the plaintiff alleges that the board of directors has breached its fiduciary duties to its shareholders in connection the proposed takeover.

On Monday, May 2, 2011, International Coal Group, Inc. (NYSE: ICO) and Arch Coal, Inc. (NYSE: ACI) announced that they have signed a definitive agreement under which Arch Coal, Inc. ( will acquire all of the outstanding shares of International Coal Group, Inc. for $14.60 per ICO share, in an all-cash transaction valued at $3.4 billion.

Indeed, shares of International Coal Group, Inc. jumped in response to the takeover news from slightly over $11 on Friday to $14.43 on Monday.

However, the plaintiff alleges that the offer is inadequate and materially undervalues the company and is unfair to its shareholders. In fact, International Coal Group, Inc. has performed well for its investors in the past. International Coal Group’s12months Total Revenue increased over the past four annual filing periods from $849.15million in 2007 to $1,166.47million in 2010. International Coal Group was able to increase its Net Income from a Net Loss of $147.56million in 2007 to a Net Income of $30.11million in 2010.

Furthermore the plaintiff alleges that the sale process is unfair to ICO stockholders as directors have agreed to preclusive corporate and deal protections such as a “no solicitation” and a $115 million “termination fee” clause and therefore “have structured the deal to provide the appearance of fairness while in reality tilting the sales process in favor of Arch”.