|Company name||Peabody Energy Corporation|
|Status||Class Action Complaint Filed|
NEW YORK, October 14, 2020 – Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of investors that purchased Peabody Energy Corporation (NYSE: BTU) common stock between April 3, 2017 and October 28, 2019 (the “Class Period”). Investors have until November 27, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The complaint, filed on September 28, 2020, alleges that from April 3, 2017 through September 28, 2018, defendants failed to disclose, and would continue to omit, the following adverse facts pertaining to the safety practices at the Company’s North Goonyella mine, which were known to or recklessly disregarded by defendants: (i) the Company had failed to implement adequate safety controls at the North Goonyella mine to prevent the risk of a spontaneous combustion event; (ii) the Company failed to follow its own safety procedures; and (iii) as a result, the North Goonyella mine was at a heightened risk of shutdown.
The truth about Peabody’s inadequate safety practices was revealed when, on September 28, 2018, a fire erupted at the mine, forcing Peabody to suspend operations indefinitely. On this news, Peabody shares fell $5.54 per share, or 13.4%.
The complaint further alleges that, following the fire and throughout the remainder of the Class Period, defendants failed to disclose, and would continue to omit, the following adverse facts pertaining to the feasibility of Peabody’s plan to restart the North Goonyella mine: (i) the Company’s low-cost plan to restart operations at the mine posed unreasonable safety and environmental risks; (ii) 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 (iii) as a result, there would be major delays in reopening the North Goonyella mine and restarting coal production.
The truth about the feasibility of Peabody’s plan to restart operations at North Goonyella was revealed through a series of disclosures beginning on February 6, 2019, when Peabody revealed that contrary to previous statements, production at the North Goonyella mine would not resume in 2019, but was instead targeted to begin to ramp in the early months of 2020. On this news, Peabody shares fell by $3.80 per share, or 10.6%.
On October 29, 2019, Peabody disclosed that QMI was placing strict restrictions on restarting operations at the North Goonyella mine and that as a result Peabody was forced to drastically adjust its reentry plan, ultimately announcing a three year or more delay before any meaningful coal could be produced. On this news, Peabody shares declined $3.26 per share, or 22%.
If you purchased Peabody common stock during the Class Period and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at email@example.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.