Robbins Arroyo LLP: Chesapeake Energy Corporation (CHK) Misled Shareholders According to a Recently Filed Class Action
October 06 2016 - 1:27PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
class action complaint was filed against Chesapeake Energy
Corporation (NYSE: CHK) in the U.S. District Court for the Western
District of Oklahoma. The complaint is brought on behalf of all
purchasers of Chesapeake securities between February 27, 2015 and
September 28, 2016, for alleged violations of the Securities
Exchange Act of 1934 by Chesapeake's officers and directors.
Chesapeake acquires, explores, and develops properties for the
production of oil, natural gas, and natural gas liquids from
underground reservoirs in the United States.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/chesapeake-energy-corporation-oct-2016
Chesapeake Accused of Implementing Ineffective Internal
Controls
According to the complaint, throughout the class period,
Chesapeake submitted multiple filings with the U.S. Securities and
Exchange Commission stating that the financial information was
accurate and disclosed any material changes to the company's
internal control over financial reporting. In its filings,
Chesapeake noted that it "follows the full cost method of
accounting under which all costs associated with oil and natural
gas property acquisition, drilling and completion activities are
capitalized."
However, the complaint alleges that Chesapeake's public
statements were misleading because Chesapeake officials failed to
disclose that Chesapeake had improperly accounted for the
acquisition and classification of oil and gas properties and that
it lacked effective internal financial controls. On September 29,
2016, Chesapeake announced that it had received a subpoena from the
U.S. Department of Justice that inquired about the company's
accounting methodology for the acquisition and classification of
oil and gas properties and related matters. On this news,
Chesapeake stock fell $0.63 per share, or over 9%, to close at
$6.12 per share on September 29, 2016.
Chesapeake Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves and the companies in which they
have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20161006006240/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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