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The lawsuit alleges such loans "can easily cloud the CEO's judgment on key issues," and it seeks to have the program rescinded.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