Notice of Proposed Voluntary Dismissal of Derivative Action
August 21 2015 - 7:01AM
Business Wire
This notice relates to a proposed voluntary dismissal of a
shareholder derivative action and is being given pursuant to an
order of The U.S. District Court for the Western District of
Oklahoma. The purpose of the notice is to advise Chesapeake Energy
Corporation (“Chesapeake” or the “Company”) shareholders that
plaintiffs Jacob Shochat and Norman Spiegel in the above referenced
action wish to voluntarily dismiss the case. Additional information
on the action and right to intervene can be found below.
Between April 20, 2012 and June 28, 2012, thirteen shareholder
derivative actions were filed in the United States District Court
for the Western District of Oklahoma, all of which were
consolidated on July 13, 2012, into a single related action
entitled In re Chesapeake Energy Corporation 2012 Shareholder
Derivative Litigation, Case. No. CIV-12-436-M (the “Derivative
Action”). The Derivative Action alleges causes of action for
breaches of fiduciary duty by directors and officers of Chesapeake
related to their purported willful disregard of alleged conflicted,
wrongful activities of former CEO Aubrey McClendon that violated
corporate policies and his fiduciary duties and their waste of
corporate assets. The alleged wrongful activities included: (i)
McClendon’s $1.1-$1.3 billion in loans from related Company
partners in order to finance his participation in a corporate
incentive program called the Founders Well Participation Program;
(ii) McClendon active management of a hedge fund he co-founded,
Heritage Management Company LLC, out of the offices of the
Company’s CEO and Chairman at the same time he was solely
responsible for managing Chesapeake’s $17 billion hedge facility
and running Chesapeake; (iii) the termination of McClendon without
cause and conflicted investigation into McClendon’s activities; and
(iv) the problematic replacement of the Company’s Board.
This notice of the proposed voluntary dismissal of the
Derivative Action will be posted in the Investor Relations section
of Chesapeake’s website for 30 days. Chesapeake shareholders are
hereby advised:
Chesapeake shareholders may intervene and continue prosecution
of the Derivative Action as a named plaintiff, with their counsel
as lead counsel for plaintiffs. Any shareholder who wishes to
intervene must file a motion with the U.S. District Court for the
Western District of Oklahoma, 200 NW 4th Street, Oklahoma City,
Oklahoma, 73102, not later than September 21, 2015. Any motion to
intervene must be filed in writing, and must include: (i) the
caption of the Derivative Action; (ii) the name of the shareholder;
(iii) proof or certification of the date the intervening
shareholder purchased Chesapeake stock, and that the intervening
shareholder has held its shares continuously since the date of
purchase; and (iv) a statement of the basis for the
intervention.
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version on businesswire.com: http://www.businesswire.com/news/home/20150821005072/en/
Chesapeake Energy CorporationInvestor Contact:Brad
Sylvester, CFA, 405-935-8870ir@chk.comorMedia Contact:Gordon
Pennoyer, 405-935-8878media@chk.com
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