Share “Chesapeake Energy wins appeals court decision”

Chesapeake Energy wins appeals court decision

The 10th Circult Court of Appeals on Tuesday upheld a lower court decision to throw out a case against Oklahoma City-based Chesapeake Energy Corp. over the company’s founders well participation program.
by Adam Wilmoth Modified: July 8, 2014 at 5:42 pm •  Published: July 8, 2014
Advertisement

A three-judge panel of the 10th Circuit Court of Appeals on Tuesday ruled in favor of Oklahoma City-based Chesapeake Energy Corp., upholding a lower court’s dismissal of a lawsuit filed by shareholders.

Chesapeake shareholders Dvora and Steven Weinstein in 2012 sued the Chesapeake executives, saying they misled shareholders through “false statements and omissions” about two financial obligations.

The appeals court agreed with a federal judge in Oklahoma City that the shareholders did not sufficiently demonstrate that Chesapeake “intentionally withheld these facts from, or recklessly disregarded the importance of those facts” to shareholders in order to deceive, manipulate or defraud.

The lawsuit centered on Chesapeake’s Volumetric Production Payment transactions and its Founders Well Participation Program.

Under the Volumetric Production Payment program, Chesapeake received cash immediately in exchange for a promise to produce and deliver natural gas over time. Chesapeake said it raised more than $6.3 billion through the deals, but the shareholders said the company failed to disclose that the arrangements would require Chesapeake to spend about $1.4 billion in future production costs.

Continue reading this story on the...

by Adam Wilmoth
Energy Editor
Adam Wilmoth returned to The Oklahoman as energy editor in 2012 after working for four years in public relations. He previously spent seven years as a business reporter at The Oklahoman, including five years covering the state's energy sector....
+ show more


Trending Now


AROUND THE WEB

  1. 1
    Coalition will rally at state Capitol to call for moratorium on injection wells, fracking
  2. 2
    Throwback Tulsa: B-47 jet broke apart, raining debris on east Tulsa in '58
  3. 3
    World Bank Admits It Ignored Its Own Rules Designed To Protect The Poor
  4. 4
    Kim Kardashian's new hair color makes headlines
  5. 5
    Anticipating Nationwide Right to Same-Sex Marriage, States Weigh Religious Exemption Bills
+ show more