Woman Takes Case Challenging Chesapeake's Private Use Of Corporate Jets To Oklahoma Supreme Court

Monday, October 29th 2012, 4:03 pm
By: News 9

A Virginia resident who challenged Chesapeake board members' use of corporate jets has appealed her case to the Oklahoma Supreme Court.

An Oklahoma County judge dismissed the case in September, citing a procedural requirement to inform the company's board of directors before suing.

Read the appeal filing 

The May 8 lawsuit accuses Chesapeake board members of "extravagant personal use" of company aircraft and understating the perk's cost to shareholders by roughly $10 million.

The lawsuit claims Chesapeake board members failed shareholders by misrepresenting personal use of company aircraft and the related cost. Norris further argued that the board had an inherent conflict of interest in awarding itself use of the aircraft.

5/9/2012 Related Story: Chesapeake Sued Over Use of Private Jets

From 2007-11, company executives and board members reported at least $13.8 million in personal use of the aircraft.

Read the original lawsuit

In the case and the subsequent appeal, filed October 11, Virginia resident Gilberta Norris argued that she wasn't required to notify the board before filing her lawsuit.

In its motion to dismiss the case, Chesapeake argued that its corporate disclosures were accurate and Norris lacked legal standing to file the case. They further argued that most of the flying was for business purposes. In May, the company eliminated use of company aircraft for personal travel.