NEW YORK, June 8, 2012 (GLOBE NEWSWIRE) -- Shareholders of Chesapeake Energy Corporation ("Chesapeake" or the "Company") (NYSE:CHK) are reminded of the securities class action lawsuit filed against the Company and its Chief Executive Officer and (then) Chairman, Aubrey K. McClendon ("McClendon"). The securities class action (5:12-cv-00465-W) was filed in the federal District Court in Oklahoma City. A subsequent securities class action filing extended the Class Period to include all persons who purchased Chesapeake common stock between and including April 30, 2009 and May 10, 2012.
The original claims focused on McClendon's undisclosed $1.4 billion leveraging of his interests in Chesapeake's Founders Well Program. While the program was intended to align McClendon's interests with shareholders, McClendon's leveraging, particularly through entities financing the Company's enormous debt load, placed him in conflict with those shareholders.
The degree of Chesapeake's undisclosed risks was further evidenced by Russell Gold's May 11, 2012 Wall Street Journal article exposing the Company's off balance sheet liabilities for over $1.6 billion in costs associated with wells whose production rights have been sold as part of the Company's Volumetric Production Payment program. In essence, Chesapeake has sold off its rights for future revenues from certain wells in return for monies to pay off its outsized debt, leaving the Company still liable to pay for the significant operating costs of these wells.
These revelations have caused considerable losses for Chesapeake investors, and contributed to today's overwhelming shareholder rejection of two Chesapeake directors for reappointment to the Company's Board.
If you are a shareholder who purchased Chesapeake common stock during the Class Period, you have until June 25, 2012 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Rachelle R. Boyle at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, with offices in New York and Chicago, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 75 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of defrauded investors. See www.pomerantzlaw.com.
CONTACT: Rachelle R. Boyle
Pomerantz Haudek Grossman & Gross LLP