Chesapeake Hit With ERISA Suit Over CEO Loan Scandal

Law360, New York (July 11, 2012, 2:57 PM EDT) -- Chesapeake Energy Corp. has been hit with an employee class action over the company's stock performance after CEO Aubrey McClendon allegedly borrowed $1 billion against his stakes in Chesapeake's oil and gas well assets, according to an investor group's statement released Tuesday.

Former Chesapeake employee Debra Boggs, on behalf of herself and other company employees, filed a suit on June 19 in Oklahoma federal court alleging that the company failed to carefully manage investments in Chesapeake's stock-based retirement plan, thereby violating the Employee Retirement Income Security...
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