NEW YORK, Apr 25, 2012 (BUSINESS WIRE) — Newman Ferrara LLP ( www.nfllp.com ) has begun an investigation into whether certain officers and directors of Chesapeake Energy Corp. (“Chesapeake” or the “Company”) CHK +0.91% 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 .
SOURCE: Newman Ferrara LLP
Newman Ferrara LLP Attorneys: Jeffrey M. Norton, 212-619-5400 jnorton@nfllp.com http://www.nfllp.com
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