February 27, 2009 17:03 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Chesapeake Energy Corporation

HARTFORD, CT--(Marketwire - February 27, 2009) - The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of those who purchased Chesapeake Energy Corporation ("Chesapeake" or the "Company") (NYSE: CHK) stock pursuant to the registration statement and prospectus (collectively, the "Registration Statement") filed with the Securities and Exchange Commission in connection with Chesapeake's July 2008 secondary offering (the "Offering").

The Complaint charges that Chesapeake and certain of its officers and directors violated federal securities laws. Specifically, the Registration Statement issued in connection with the Offering was materially false because it failed to disclose the following: (i) Chesapeake's exposure to natural gas price declines had not been adequately limited by Chesapeake's hedging actions prior to the Offering; (ii) that Chesapeake had entered into hedging contracts with Lehman Brothers, an underwriter in the offering, though based on Lehman Brothers' rapidly declining financial condition, it would be unable to fulfill its financial commitment; (iii) prior to the Offering, Chesapeake's aggressive hedging activities had been significantly running up the price of natural gas and Chesapeake's stock price; (iv) Chesapeake's lease brokers, had been aggressively bidding up the prices Chesapeake was obligated to pay in leases and royalty agreements; and (v) Chesapeake was failing to write down impaired goodwill on the assets it was acquiring.

If you are a member of the class, you may, no later than April 27, 2009, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/chesapeakeenergy/, or contact Izard Nobel LLP toll-free at (800) 797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.