Chesapeake Sheds Investor Suit Over $1B In CEO Loans

Law360, New York (April 10, 2013, 9:05 PM EDT) -- A federal judge in Oklahoma tossed a more than $1 billion shareholder class action against Chesapeake Energy Corp. on Wednesday, ruling that the plaintiffs never made a “cogent and compelling” argument that the company and its brass tried to defraud investors over a billion-dollar loan made by its former CEO.

The investors sued Chesapeake in April 2012 claiming the Oklahoma-based energy company and its executives misled them by not disclosing co-founder Aubrey McClendon’s $1.1 billion in person loans secured by stakes he had in the firm’s...
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