After Massey Energy Company announced that its board of directors agreed to a takeover of Massey Energy by Alpha Natural Resources an investigation for investors of Massey Energy Company (NYSE:MEE) concerning 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 breached or will breach their fiduciary duties owed to Massey Energy Company (NYSE:MEE) investors in connection with the takeover.

On Saturday, January 29, 2011, Massey Energy Company (NYSE: MEE) and Alpha Natural Resources, Inc. (NYSE: ANR) announced that they signed an agreement under which Alpha Natural Resources will acquire all outstanding shares of Massey Energy common stock (MEE)in a $8.5 billion transaction. Under the terms of the proposed agreement, Massey Energy Company stockholders will receive, at the closing, 1.025 shares of Alpha Natural Resources common stock and $10.00 in cash for each share of Massey Energy Company (MEE) common stock. Based on the closing share price of Alpha Natural Resources common stock as of January 28, 2011, the agreement placed a value of $69.33 per share of Massey Energy common stock. Massey Energy Company said the offer represents a 21% premium to Massey Energys current share price

But 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). 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 gained value and traded in April 2010 as high as $53.05 per share. Recently jumped in response to the first takeover rumors in November 2010 from $43.61 to almost $48. MEE shares closed Mondays trading at $46.83 per share. In addition Massey Energy Company has performed well for its shareholders in the past. 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. Specifically the investigation focuses whether the Massey Energy board of directors undertook an adequate and fair sales process to obtain fair consideration for all shareholders of Massey Energy Company (NYSE:MEE) and breached their fiduciary duties to Massey Energy Company (NYSE:MEE) shareholder by failing to adequately shop the Company before entering into the transaction. A potential class action lawsuit would seek to maximize the amount of money and information MEE shareholders would receive in a buyout, so the law firm.