“The allegations in the complaint do not reference any meeting attended by any defendant, any internal report he received or reviewed, any internal email or any other information that would tend to show that the particular defendant knew the ‘truth' about the facts that were purportedly misstated and knew that its nondisclosure would likely mislead investors.”
Specifically to McClendon, Miles-LaGrange said the shareholders did not show the former CEO “knew that not disclosing his personal loans would somehow mislead investors.”
Other shareholder lawsuits are pending against Chesapeake, its officers and its directors. The U.S. Securities and Exchange Commission also is conducting a formal investigation.
The U.S. Justice Department and Michigan's attorney general also are investigating Chesapeake and Encana Corp. for possible antitrust violations concerning 2010 bids for Michigan natural gas leases.
CONTRIBUTING: Paul Monies, Business Writer