Chesapeake Energy Sued For Violating Leaseholder Agreements
November 24 2010 - 6:16PM
Dow Jones News
A Texas woman sued Chesapeake Energy Corp. (CHK) Wednesday
claiming the company, with the help of its bankers, violated the
rights of leaseholders for oil wells by selling minerals without
compensating members of joint operating agreements.
The lawsuit, filed in federal court in Manhattan by Mary Linda
McCall, claims Chesapeake made as much as $5 billion in unjust
profits since late December 2007.
According to the suit, seeking class-action status, Chesapeake
"wrongfully retained" the proceeds of those sales for its sole
benefit, while failing to adhere to the contractual guidelines with
its leaseholders.
The suit hopes to recover "hundreds of millions--perhaps
billions--of dollars" due to leaseholders.
The suit claims Chesapeake and its bankers violated the rights
of the non-operating working interest owners. Chesapeake allegedly
sold minerals in the ground without their consent.
"Chesapeake, as operator and a co-tenant, does not have the
unbridled right to do as it pleases with the minerals in the
ground," the suit said.
The banks in the lawsuit include units of Goldman Sachs Group
Inc. (GS), Morgan Stanley (MS), Deutsche Bank AG (DB, DBK.XE) and
Barclays Capital.
Deutsche Bank and Goldman declined comment Wednesday. Morgan
Stanley and Barclays didn't immediately respond to requests for
comment.
A Chesapeake Energy spokesman didn't immediately have a comment
Wednesday.
-By Steven Russolillo and Chad Bray, Dow Jones Newswires;
212-416-2180; steven.russolillo@dowjones.com
Chesapeake Energy (NASDAQ:CHK)
Historical Stock Chart
From Mar 2024 to Apr 2024
Chesapeake Energy (NASDAQ:CHK)
Historical Stock Chart
From Apr 2023 to Apr 2024