Former Chesapeake employee sues over stock performance
A former Chesapeake Energy Corp. employee has filed a federal lawsuit against the company and its board of directors, accusing them of breaching their fiduciary duty to participants in Chesapeake’s employee stock ownership plan.
Debra Boggs is seeking to have the lawsuit certified as a class action case on behalf of all current or former Chesapeake employees who are beneficiaries of the program. It was filed under the Employee Retirement Income Security Act.
Her lawsuit does not indicate when Boggs, a former officer cleaner, worked at Chesapeake or how much stock she owns.
The 104-page lawsuit details Chesapeake’s alleged misdeeds, as laid out over the past two months in media reports and the company’s regulatory filings.
The allegations are similar to those brought by at least 16 other Chesapeake shareholders who have filed lawsuits since April 19.
Boggs’ lawsuit seeks to force Chesapeake to repay losses suffered by participants in the stock program.
The company’s stock dipped to as low as $13.32 a share over the past two months, but it closed Tuesday at $18.71. That is down about 2 percent from the day before the initial Reuters report about CEO Aubrey McClendon’s personal loans.
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Comments
Scott, you show your ignorance of oil and gas 401k plans and matching stock contributions. employees do not have a choice as to what the company provides in matching contributions.
This article was not about what the company provides in matching contributions. Read the headline. The article didn’t indicate when she worked there. Was she retired? There are inherent risks in investing in the stock market. Don’t put your eggs in one basket. So since boomer seems to know how this works, enlighten the readers as to how she was the victim here.
This is stupid. Yeah the big House of Cards screwed up and common people didn’t have a clue it was coming. At least not this soon. But really? If you choose to gain stock in the company you need to understand that the stock market fluxuates and there is potential for complete loss. Sounds like this person is trying to strike while the iron has already cooled off.