Shareholder lawsuit filed against McClendon, Chesapeake board of directors
UPDATE: A second lawsuit has also been filed. See a copy below.
Following revelations earlier this week of up to $1.1 billion in personal loans by Chesapeake Energy CEO Aubrey McClendon against his interests in company wells, a shareholder has filed a lawsuit in federal court in Oklahoma City.
The lawsuit accuses Chesapeake of not adequately disclosing the existence of the loans, which were taken against McClendon’s interests in a unique perk called the Founder Well Participation Program. The program allows McClendon to take a 2.5 percent stake in each well drilled by Chesapeake. He still has to pay upfront costs if he chooses to participate in the program.
Chesapeake has maintained the loans were McClendon’s personal business and the details of the Founder Well Participation Program have been public in the company’s proxy filings with the Securities and Exchange Commission.
When news of the loans came out Wednesday, at least five law firms across the country, including one headed by a former attorney general of Louisiana, announced their intention to pursue lawsuits against the company and board of directors.
Energy reporter Jay F. Marks has a web update on the lawsuit here.
Here’s a copy of the lawsuit:
Second lawsuit:
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Comments
He’s stolen lots of $$$ from the Shareholders via the deal with the former Citadel Radio…they got the broadcast rights by giving the ownership group all revenue received from ad sales during the game — so McClendon (part of the ownership group) loads up on Chesapeake ads, using company money to enrich himself…this is the definition of tip of the iceberg with this hoodlum, but it’s an interesting look at how he operates.
[...] shareholders’ lawsuit, which you can read for yourself here, came just one day after the Reuters story hit the streets — although the fact that McClendon [...]
It just seems to be the same ol’ same ol’ with these guys.
Your company takes a bath and yet you still get a bonus?!? Really? I fail to do my job properly and I’m out the door by close of business if I’m lucky, sooner if not.
You get the company to buy your private.antique map collection for 12 million. When caught you “graciously ” repay the company. Anywhere else, that would embezzlement or misuse of corporate funds, with a trip to the cop shop wearing stylish silver bracelets. But here its just another day at the office.
Finally, getting a “loan” of corporate funds. WTF! On what plane of unreality is that even legal?
I guess the supposed lessons learned of the CEOs who went to jail for living high on other people’s money weren’t really learned.
Just more of the same.
And they wonder why the less fortunate hate them so much. I just wish I knew then what I know now. How to rob people with both hands and get away with it!
If he pays back the loans, what’s the big deal? I mean, it is a rather large loan, but it’s a rather large corporation he runs. What should be discussed is, “Can he pay back the loan? Is he monetarily able? How does he plan on doing it? Does this cut into company cost? Is there embezzlement involved? Who needs a billion dollar loan, anyway?”