Newman Ferrara LLP (www.nfllp.com)
has begun an investigation into whether certain officers and directors
of Chesapeake Energy Corp. (“Chesapeake” or the “Company”) (NYSE: CHK)
breached their fiduciary duty in permitting the Company’s CEO to take a
significant and irregular loan against Company assets.
Concerned investors are encouraged to contact Newman Ferrara partner
Jeffrey M. Norton at (212) 619-5400 or jnorton@nfllp.com
to discuss this investigation, their rights, or potential remedies.
On April 18, Reuters reported that the Company’s CEO, Aubrey McClendon,
borrowed as much as $1.1 billion against his personal ownership stakes
in wells owned by the Chesapeake. According to the report, McClendon
used proceeds “to fund [his] operating costs for an unusual corporate
perk that offers him a chance to invest in a 2.5 percent interest in
every well the company drills.” The loan raises questions as whether
McClendon’s personal financial deals may compromise his fiduciary duty
to Chesapeake’s shareholders. Remarkably, the Company had not previously
disclosed the loans to shareholders. On April 19, 2012, The Wall Street
Journal reported that Chesapeake’s general counsel had confirmed that
the Company’s board of directors was aware of the existence of
transactions. Analysts have called for the ouster of both the board and
McClendon.
Newman Ferrara maintains a multifaceted practice based in New York City
with attorneys specializing in complex commercial and multi-party
litigation with an emphasis on securities, ERISA, consumer fraud,
products liability, civil rights and real estate. For more information,
please visit the firm website at www.nfllp.com.
