LONDON, Ky. — A financial dispute tied to coal operations in Eastern Kentucky has landed in federal court, with an investment firm accusing a mining company and its leadership of fraudulently securing tens of millions of dollars while concealing serious financial problems.

In a lawsuit filed in federal court, Tacora Capital alleges that Mine & Rail Corporation and related entities misrepresented their financial condition to obtain roughly $30 million in investments and loans. The complaint also names several affiliated Australian companies and Australian members of Mine & Rail’s board of directors as defendants.

According to the lawsuit, Mine & Rail sought funding to support planned coal acquisitions in Eastern Kentucky, including assets connected to Coking Coal and Clintwood JOD. Tacora claims the company portrayed itself as financially stable and capable of completing the transactions, when in reality it was facing severe cash shortages and potential insolvency.

The complaint states Tacora initially provided $20 million through a convertible note, followed by an additional $7 million in loans after Mine & Rail reported unexpected funding gaps. Tacora alleges the defendants promised collateral security they ultimately could not deliver and failed to disclose contractual obligations that prevented the company from granting a senior lien on assets.

The dispute escalated in late January 2026, after Mine & Rail requested another $3 million addition to the note. Days later, the company disclosed what Tacora describes as an additional $15 million cash shortfall. Tacora claims that revelation exposed the company’s true financial condition and prompted the lawsuit.

Tacora is seeking compensatory and punitive damages of at least $30 million, along with attorney fees and other relief. The allegations have not been proven in court, and the defendants’ have not yet filed a response.

A copy of the full complaint follows: