LOS ANGELES, Oct. 9, 2020 /PRNewswire/ — The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Peabody Energy Corporation (“Peabody” or the “Company”) (NYSE: BTU) common stock between April 3, 2017 and October 28, 2019, inclusive (the “Class Period”). Peabody investors have until November 27, 2020to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On September 28, 2018, Peabody announced that it did “not expect any production from North Goonyella in the fourth quarter of 2018” due to a fire occurring within the mine.
On this news, the Company’s stock price fell $5.54, or over 13%, to close at $35.64 per share on September 28, 2018, thereby injuring investors.
Then, on February 6, 2019, Peabody reported disappointing financial results for fourth quarter 2018 due to remediation costs and lack of production at the North Goonyella mine. The Company also announced that production would not resume at the mine until the “early months of 2020.”
On this news, the Company’s stock price fell $3.80, or 11%, to close at $32.05 per share on February 6, 2019, thereby injuring investors further.
Then, on October 29, 2019, Peabody disclosed that operations at the North Goonyella mine would not resume for three or more years due to local regulators’ strict restrictions.
On this news, the Company’s stock price fell $3.56, or 22%, to close at $12.48 per share on October 29, 2019, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Peabody 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; (3) as a result, the North Goonyella mine was at a heightened risk of shutdown; (4) the Company’s low-cost plan to restart operations at the mine posed unreasonable safety and environmental risks; (5) the Australian body responsible for ensuring acceptable health and safety standards would likely mandate a safer, cost-prohibitive approach; and (6) as a result, there would be major delays in reopening the North Goonyella mine and restarting coal production.
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If you purchased Peabody common stock during the Class Period, you may move the Court no later than November 27, 2020to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Peabody securities, have information or 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 Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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SOURCE The Law Offices of Frank R. Cruz, Los Angeles