Peabody Energy Corporation is facing a class action lawsuit alleging violations of the Employee Retirement Income Security Act (ERISA) by continuing to offer company stock as an investment in several defined contribution (DC) plans.
The lawsuit alleges that certain defendants failed to avoid or ameliorate inherent conflicts of interests which crippled their ability to function as independent, single-minded fiduciaries with only the plans’ and their participants’ best interests in mind. In addition, it alleges that certain defendants breached their fiduciary duties by failing to adequately monitor other persons to whom management/administration of the plans’ assets was delegated. (Source PlanAdvisor)