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: