Union Takes Up Suit Against Peabody (BTU), Arch Coal (ACI) Over Benefit Transfer to Patriot (PCXCQ)

Peabody (NYSE: BTU) and Arch Coal (NYSE: ACI) shares are lower on the session amid reports that the United Mine Workers of America are taking up a suit against the companies over pension and health care obligations

Following reports last week that a Patriot Coal Corporation (OTCBB: PCXCQ) retiree group might take action against the two, today's filing seeks liabilities following the transfer of pension and health care benefits to Patriot Coal in 2007.

The group is concerned over Patriot taking advantage of certain laws while in Chapter 11 bankruptcy, which would allow the company to cut pension and other benefits to retirees. Patriot currently claims that the benefits are untenable.

In total, about 10,000 union members would be affected by any changes.

The lawsuit is Howe et al v. Peabody Holding Co LLC et al, U.S. District Court, Southern District of West Virginia, case number unavailable.

Shares of Arch are down 4.1 percent, which Peabody is moving into positive territory Thursday morning.

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