Judge dismisses shareholder lawsuit against Chesapeake

A U.S. District judge on Wednesday sided with Chesapeake Energy Corp. and dismissed a class-action lawsuit concerning the company's finances and those of co-founder Aubrey McClendon.
by Adam Wilmoth Published: April 11, 2013

The judge said the shareholders made generalized allegations “without any specific corroborating details.”

“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

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....
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