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id: 410, Created by Stan Vick Chase, Scout
Peabody Energy Corp
03 April 2017Class period Start
28 October 2019Class period End
02 February 2023Claim deadline
In re Peabody Energy Corp. Securities Litigation.
Peabody Energy (BTU) agreed to pay $4.6 million to settle a securities class action lawsuit.
The Complaint alleged that the Company and its Leaders failed to disclose the following adverse facts pertaining to the safety practices at the Company’s North Goonyella mine, which were known to or recklessly disregarded:
- the Company had failed to implement adequate safety controls at the North Goonyella mine to prevent the risk of a spontaneous combustion event;
- the Company failed to follow its own safety procedures;
- as a result, the North Goonyella mine was at a heightened risk of shutdown.
On September 28, 2018, a fire erupted at the mine, forcing Peabody to suspend operations indefinitely. On this news, Peabody shares fell 13.4%. The Complaint further alleged that following the fire the Company failed to disclose adverse facts pertaining to the feasibility of Peabody’s plan to restart the North Goonyella mine:
- the Company’s low-cost plan to restart operations at the mine posed unreasonable safety and environmental risks;
- the Australian body responsible for ensuring acceptable health and safety standards, the Queensland Mines Inspectorate (“QMI”), would likely mandate a safer, cost-prohibitive approach; and
- as a result, there would be major delays in reopening the North Goonyella mine and restarting coal production.
Peabody Energy (BTU) agreed to settle with investors to avoid further litigation.
Oregon Public Employees Retirement Fund
Labaton Sucharow LLP
Southern District of New York
Hon. P. Kevin Castel
Strategic Claims Services
Court hearing date
07 February 2023
+$4,625,000Total Settlement Amount