Lynn v. Peabody Energy Corp.

Participants in Peabody Energy Corporation’s employee stock option plans brought a lawsuit alleging that the plan administrator violated its duty of prudence by continuing to invest in the company’s stock well after public information made it clear that doing so was unreasonable. The court dismissed the case, finding that plaintiffs failed to meet the high burden of describing an alternative investment that “a prudent fiduciary in the same circumstances would not have viewed as more likely to harm the fund than to help it.”

Links

 * Sabin Center Database