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Peabody Energy Stock Drop Case

This case has been dismissed on the basis of failure to meet the standards of similar past cases. The complaint, filed on behalf of participants in the Peabody Investments Corporation Employee Retirement Account, the Peabody Western–UMWA 401(k) Plan and the Big Ridge, Inc. 401(k) Profit Sharing Plan and Trust, alleges that plan officials breached their fiduciary duties by continuing to offer stock in the plans when imprudent to do so, and by maintaining a significant stock allocation in the Plans. Plaintiffs claim that fiduciaries should have been aware of the negative indicators to the stock investment – risk profile, business prospects of the company in light of industry factors, and high predictors of bankruptcy. Plaintiffs say that fiduciaries could have directed employer and participant contributions to cash in lieu of company stock, closed the stock investment to future contributions, and required that existing assets be transferred out in some fashion.

www.planadviser.com; April 10, 2017.