Climate Change Disclosure: New York Attorney General Reaches Settlement with Peabody Energy Corporation to Change its Disclosure Practices Regarding Climate Change

Sullivan & Cromwell LLP - November 12, 2015
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On November 8, 2015, the New York Attorney General entered into a settlement agreement with Peabody Energy Corporation (“Peabody” or the “Company”), the world’s largest publicly traded coal company, regarding the Company’s practices with respect to disclosure concerning climate change and the potential impact of climate change on its business.  The settlement concludes a two-year investigation by the Attorney General’s office, under New York’s Martin Act, which determined that Peabody’s SEC filings and other public disclosures made misleading statements about the potential effects of proposed laws and regulations targeting carbon emissions on Peabody’s future business.  Under the terms of the settlement, Peabody neither admitted nor denied the investigation’s findings, but agreed to make certain corrective disclosures in its next quarterly report and to make certain adjustments to its disclosure practices going forward.