NEW YORK, Sept. 29, 2020 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Peabody Energy Corporation (“Peabody Energy” or the “Company”) (NYSE: BTU) in the United States District Court for the Southern District of New York on behalf of those who purchased or acquired the securities of Peabody Energy between April 3, 2017 and October 28, 2019, inclusive (the “Class Period”). The lawsuit seeks to recover damages for Peabody Energy investors under the federal securities laws.
The Complaint alleges that 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: (1) the Company had failed to implement adequate safety controls at the North Goonyella mine to prevent the risk of a spontaneous combustion event; (2) the Company failed to follow its own safety procedures; and (3) as a result, the North Goonyella mine was at a heightened risk of shutdown. Further, according to the Complaint, following the September 28, 2018 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: (1) the Company’s low-cost plan to restart operations at the mine posed unreasonable safety and environmental risks; (2) 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 (3) as a result, there would be major delays in reopening the North Goonyella mine and restarting coal production. When the true details entered the market, the Complaint claims that investors suffered damages.
Investors who purchased or otherwise acquired shares of Peabody Energy during the Class Period should contact the Firm prior to the November 27, 2020 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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