Peabody investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Peabody is the largest coal mining company in the world, with 23 coal mines throughout the United States and Australia. The North Goonyella mine in Australia was acquired by Peabody in 2004. As of the start of the Class Period, the North Goonyella mine was considered Peabody’s most profitable single operation.
The Class Period commences on April 3, 2017, when Peabody announced that it had emerged from bankruptcy protection and that its stock would begin trading again on the NYSE. In conjunction with the announcement, Peabody further declared that “[i]n the past year, Peabody has reduced debt by more than $5 billion from pre-filing levels at March 2016. In addition, Peabody achieved record safety this past year; protected jobs; served global customers; reduced costs and built cash and liquidity; strengthened the Australia platform; accelerated coal mine restoration; provided third-party bonding assurances; and was recognized globally for sustainability.” On September 28, 2018, a fire erupted at the North Goonyella mine, forcing Peabody to suspend operations indefinitely. Following this news, Peabody’s share price fell $5.54, or 13.4%. Following the fire, the defendants assured the market that Peabody had a feasible plan to remediate and reopen the North Goonyella mine, and that it would be able to extract significant coal at the mine in the near-term.
The truth about the feasibility of Peabody’s plan to restart operations at North Goonyella was revealed through a series of disclosures. First, on February 6, 2019, Peabody revealed that contrary to previous statements, production at the North Goonyella mine would not resume in 2019, but was instead now targeted to begin to ramp in the early months of 2020. Following this news, Peabody’s share price fell by $3.80, or 10.6%.
Then, on May 1, 2019, Peabody reported that it had received a directive from Queensland Mines Inspectorate (“QMI”), which could lead to further delays and necessitate a reevaluation of Peabody’s reentry plan. Following this news, Peabody’s share price fell $1.61, or 5.6%.
On July 31, 2019, Peabody reported additional delays to the reentry of North Goonyella, explaining that QMI’s requirements had resulted in a slower rate of progress than Peabody’s initial plan had contemplated. As a result, Peabody suspended its 2020 production guidance at the mine and informed investors that it was reevaluating its entire reentry plan. Following this news, Peabody’s share price fell by $1.06, or 4.8%.
Finally, 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 the reentry plan, ultimately announcing a three year or more delay before any meaningful coal could be produced. Following this news, Peabody’s share price declined $3.56, or 22%.
The complaint alleges that throughout the Class Period, the defendants failed to disclose that: (a) Peabody had failed to implement adequate safety controls at the North Goonyella mine to prevent the risk of a spontaneous combustion event; (b) Peabody failed to follow its own safety procedures; (c) as a result, the North Goonyella mine was at a heightened risk of shutdown; (d) Peabody’s low-cost plan to restart operations at the mine posed unreasonable safety and environmental risks; (e) QMI would likely mandate a safer, cost-prohibitive approach; and (f) as a result, there would be major delays in reopening the North Goonyella mine and restarting coal production.
If you are a member of the class described above, you may no later than November 27, 2020 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-844-887-9500 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
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