Peabody Energy Corporation

According to the complaint, 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 allegedly failed to disclose to investors that:

(a) the Company had failed to implement adequate safety controls at the North Goonyella mine to prevent the risk of a spontaneous combustion event;
(b) the Company failed to follow its own safety procedures;
(c) as a result, the North Goonyella mine was at a heightened risk of shutdown;
(d) the review of the mine’s records suggested that gas trends were not given sufficient consideration, which may have impacted the way in which [trigger action response plans] were applied and actioned;
(e) some key reports relating to the mine’s ventilation plan, gas alarm system and explosion risk zone controls did not appear to have been reviewed or countersigned by key personnel, as required under the mine’s safety and health management system;
(f) there was evidence that some boreholes located deep within the 9N goaf region were insufficiently sealed, allowing an ingress of oxygen into active goaves, with the potential to escalate conditions for spontaneous combustion; and
(g) there was evidence to suggest the mine did not follow its own procedures relating to major ventilation changes.