Peabody Energy Case could have rippling effect on other companies
The New York state attorney general's office is now considering if it can use the strategy, which it implied on Peabody Energy, outside the energy sector. This week, Peabody Energy has been asked to provide clearer picture to investors on how its sales will be affected from the steps taken to cut global warming.
On Monday, the investigation into the company has finally been settled. Under the investigation, it has been found that Peabody has repeatedly refused in public filings that it can estimate on the level of impact climate change regulations can have on its business.
Its internal studies have clearly shown that the company’s revenue will severely suffer if coal will be targeted in a carbon pollution crackdown. New York Attorney General Eric Schneiderman has found this discrepancy to be violation of securities laws.
Experts think that the case will have an impact on other fossil fuel companies. But it is also being considered that the investigation will also act as a pressure on many companies outside the energy sector.
James Cox, a law professor at Duke University in Durham, North Carolina, said that the settlement will have a rippling effect. It shall however, be noted that for now no more action has been planned.
“The Peabody settlement ... should be seen as a shot across the bow to any company that faces regulatory risk in its core business, whether you produce junk food, high-priced pharmaceuticals or fossil fuels”, said Andrew Logan of Ceres.
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