San Diego, CA -- (ReleaseWire) -- 05/02/2012 -- Two investors filed lawsuit against the CEO and several other directors of Chesapeake Energy Corporation over alleged breaches of fiduciary duties in connection with certain loans to the CEO.
Investors who purchased a significant amount of NYSE:CHK shares and currently hold the majority of those Chesapeake Energy Corporation (NYSE:CHK) shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges that the defendants, including the CEO, breached their fiduciary duties in connection with loans to Chesapeake Energy’s Co-Founder and CEO Aubrey K. McClendon.
On April 18, 2012, media report was published concerning potential conflicts of interest created by personal loans to Chesapeake Energy’s chief executive officer, Aubrey McClendon. According to the article, during the past three years McClendon borrowed approximately $1.1 billion by pledging his personal stake in Chesapeake Energy's oil and natural gas wells as collateral for the loans, which were made through three companies controlled by McClendon that list Chesapeake Energy’s headquarters as their address. The article said that “The money is being used to help finance what could be a lucrative perk of [McClendon’s] job -- the opportunity to buy into the very same well stakes that he is using as collateral for the borrowings,” and raised concerns about “whether McClendon's personal financial deals could compromise his fiduciary duty to Chesapeake investors.”
The plaintiff said that the lawsuit was brought to address allegedly material disclosure violations permitted by the board of directors and to ensure that any damages suffered by Chesapeake Energy Corporation by reason of these violations are borne by the individual defendants, and not by the company and its innocent shareholders.
The plaintiff seeks to require that the CEO and other board members disclose all material facts relating to the loans, arrange independent oversight for the borrowings to identify any threats to the company, and to rescind the plan under which the CEO was able to invest in the wells.
Shares of Chesapeake Energy Corporation (NYSE:CHK) fell more than 5% following the media report and closed on April 18, 2012 at $18.06 per share and closed on Friday, April 20, 2012, at $17.44 per share.
Those who are current long term investors in shares of Chesapeake Energy Corporation (NYSE:CHK), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego