Shareholder Sues Chesapeake Energy Over CEO Aubrey McClendon's Loans

Saturday, April 21st 2012, 8:56 pm

By: News 9

A Chesapeake Energy Corp. shareholder has sued CEO Aubrey McClendon and board members after it was revealed that McClendon took out up to $1.1 billion in personal loans to buy a stake in the company's wells.

The Deborah G. Mallow IRA SEP Investment Plan filed a federal lawsuit Thursday in Oklahoma City, alleging the board of directors didn't disclose all material facts about the loans.

Reuters reported Wednesday that McClendon borrowed the money to participate in a plan that allows him to take a 2.5 percent stake in the company's wells.

4/18/2012 Related Report: Chesapeake Energy Stock Down Following Reuters Report

The lawsuit alleges such loans "can easily cloud the CEO's judgment on key issues," and it seeks to have the program rescinded.

Chesapeake spokesman Michael Kehs says the company will vigorously defend the allegations.


Get The Daily Update!

Be among the first to get breaking news, weather, and general news updates from News 9 delivered right to your inbox!

More Like This

April 21st, 2012

July 20th, 2022

August 31st, 2021

August 13th, 2021

Top Headlines

October 4th, 2022

October 4th, 2022

October 4th, 2022

October 4th, 2022