In response to the buyout rumors an investigation on behalf of investors of Massey Energy Company (Public, NYSE:MEE) over possible breaches of fiduciary duties was announced.

The investigation by a law firm concerns whether Massey Energy Company and certain of its officers and directors breach or breached their fiduciary duties owed to Massey Energy Company (NYSE:MEE) investors in connection with the takeover rumors or in the event of a takeover.

Richmond based coal producer Massey Energy Companys 12month Total Revenue went from $2.219billion in 2006 to $2.691billion in 2009. Its Net Income went from $40.98million in 2006 to $104.43million in 2009. For the first three quarters in 2010 Massey Energy Company reported quarterly Total Revenue of $688.64million, $810.15million, and $810.20million.

Shares of Massey Energy Company traded during 2008 as high as $91.19 per share but fell during 2009 to almost $10. Even though MEE shares closed 2009 at $42.01 per share MEE shares lost more than 50% of its 2008 all time high. MEE shares traded gained value and traded in April 2010 as high as $53.05 per share and recently jumped in response to the takeover rumors on November 05 from $43.61 to almost $48. MEE shares closed Mondays trading at $46.83 per share.

The investigation by a law firm questions whether a potential sale process and the potential price would be unfair to the shareholders of Massey Energy Company (NYSE:MEE).

On November 06, 2010, the Wall Street Journal reported that Massey Energy Co. is weighing a takeover offer from rival Alpha Natural Resources Inc. The Wall Street Journal said that Massey's board retained investment bank Perella Weinberg for advice on the bid from Alpha

The investigation focuses whether the Massey Energy board of directors will undertake an adequate and fair sales process to obtain fair consideration for all shareholders of Massey Energy Company (NYSE:MEE) and will breach their fiduciary duties to Massey Energy Company (NYSE:MEE) shareholder by failing to adequately shop the Company before entering into any transaction. In addition the investigation seeks also to determine if any officer, director or any insiders violated any laws in connection with the takeover rumors.