SOURCE: Shareholders Foundation, Inc

Shareholders Foundation, Inc

April 23, 2012 09:33 ET

Chesapeake Energy Corporation (CHK) Investor Lawsuit Against CEO in Connection With Loans Announced by Shareholders Foundation

SAN DIEGO, CA--(Marketwire - Apr 23, 2012) - The Shareholders Foundation, Inc. announces that a lawsuit was filed by an investor in Chesapeake Energy Corporation (CHK) against the CEO and other directors of Chesapeake Energy Corporation in connection with certain loans to the CEO.

Investors who purchased a large amount of shares of Chesapeake Energy Corporation (CHK) and currently hold any of those CHK shares, have certain options and should contact the Shareholders Foundation, Inc. by e-mail at mail@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 McClendon.

On April 18, 2012, it was reported that McClendon borrowed over the past three years as much as $1.1 billion against his interest in wells the company has granted him. The plaintiff alleges that those loans were previously undisclosed to shareholders and raise serious conflicts of interest.

The plaintiff said 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.

Those who are current investors in Chesapeake Energy Corporation shares, have certain options and should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.

The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

Contact Information

  • CONTACT:
    Shareholders Foundation, Inc.
    Trevor Allen
    +1 (858) 779-1554
    mail@shareholdersfoundation.com
    3111 Camino Del Rio North
    Suite 423
    San Diego, CA 92108