Chesapeake Can't Duck Derivative Suit Over $2B Stock Offering

Law360, New York (September 28, 2012, 11:29 PM EDT) -- An Oklahoma federal judge on Friday refused to toss a derivative suit claiming Chesapeake Energy Corp.'s top brass failed to disclose risks relating to a $1.65 billion stock offering, finding the shareholder plaintiff had brought the matter to the company's board before filing.

U.S. District Judge Timothy D. DeGiusti denied the motion to dismiss by the natural gas producer and its board, finding the allegations by shareholder M. Lee Arnold substantial enough to create a factual dispute as to whether the demand futility threshold for a...
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Case Information

Case Title

Arnold v. McClendon et al


Case Number

5:11-cv-00986

Court

Oklahoma Western

Nature of Suit

Stockholders Suits

Judge

Timothy D. DeGiusti

Date Filed

September 6, 2011

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