Chesapeake shareholders sue McClendon, board over loan report
BY JAY F. MARKS NewsOK.com
Saturday, April 21, 2012
At least two Chesapeake Energy Corp. shareholders have filed lawsuits against CEO Aubrey McClendon and other board members after a news report this week revealed McClendon had secured up to $1.1 billion in loans to pay for his stake in the company's wells.
Chesapeake on Friday reiterated its position that the program aligns the interests of the company and its chief executive by allowing McClendon to buy a 2.5 percent stake in all of its wells.
“The company believes the FWPP (Founders Well Participation Program) fosters and promotes the development and execution of the company's business,” Chesapeake said in a preliminary proxy statement filed in advance of its annual meeting in June.
Connecticut resident Christopher Snyder and New York-based Deborah G. Mallow IRA SEP Investment Plan are asking a federal judge in Oklahoma City to rescind the loan program and force McClendon and the rest of Chesapeake's board to disclose all material facts about the loans.
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