An investigation on behalf of former and current employees of Chesapeake Energy Corporation, who are or were participants or beneficiaries of any Chesapeake Energy employee company stock option plan and/or purchased and/or currently hold Chesapeake Energy Corporation (NYSE:CHK) stocks, concerning potential violations of the Employee Retirement Income Security Act (“ERISA”) was announced.
Those who are former or current employees or members of any of Chesapeake Energy’ investment plans or profit sharing retirement plans, including the Chesapeake Energy’s Savings & Incentive Stock Bonus Plan, and purchased or hold Chesapeake Energy Corporation (NYSE:CHK) shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1 (858) 779 – 1554.
According to the investigation by a law firm under ERISA employees (former and current) of Chesapeake Energy Corporation may also be eligible to file a complaint for putting stock options at risk if they can prove their employer violated its fiduciary duty to them.
Following a media report on April 18, 2012, concerning potential conflicts of interest created by personal loans to Chesapeake Energy’s chief executive officer, Aubrey McClendon, several investors filed lawsuits. One lawsuit was filed again Chesapeake Energy Corporation over alleged securities laws violations and several current stockholders filed lawsuits against directors of Chesapeake Energy Corporation over alleged breaches of fiduciary duties.
According to the article, during the past three years Chesapeake Energy’s CEO borrowed approximately $1.1 billion by pledging his personal stake in Chesapeake Energy’s oil and natural gas wells as collateral for the loans, which were made through three companies controlled by McClendon that list Chesapeake Energy’s headquarters as their address. The article said that “The money is being used to help finance what could be a lucrative perk of [McClendon’s] job — the opportunity to buy into the very same well stakes that he is using as collateral for the borrowings,” and raised concerns about “whether McClendon’s personal financial deals could compromise his fiduciary duty to Chesapeake investors.”
On May 1, 2012, Chesapeake Energy Corporation announced that its board of directors and its CEO agreed to an early termination of the company’s Founder Well Participation Program and on May. 3, 2012, Chesapeake Energy Corporation confirmed that the company and its Chairman and CEO have been notified by the Securities and Exchange Commission that its Fort Worth Regional Office has commenced an informal inquiry and requested that the company and Mr. McClendon retain certain documents.
On May 15, 2012, another article stated that Thousands of Chesapeake Energy Corporation workers have retirement portfolios that are heavily invested in NYSE:CHK stock, which has declined sharply following revelations about the CEO’s business dealings.
NYSE:CHK shares fell from over $25 per share in March 2012 to as low as $14.36 on May 18, 2012.
Those who are former or current employees or members of any of Chesapeake Energy’ investment plans or profit sharing retirement plans and purchased or hold Chesapeake Energy Corporation (NYSE:CHK) shares or have information relating to this investigation, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North – Suite 423
92108 San Diego