Chesapeake Calls Investor Suit Over Loans 'Dead Wrong'

Law360, New York (December 7, 2012, 7:06 PM EST) -- Chesapeake Energy Corp. and its CEO, Aubrey McClendon, demanded Thursday that a federal court toss investors' class action against them, saying it fails to make compelling allegations of securities fraud regarding $1.1 billion the chief executive borrowed against his stakes in the company's gas wells.

The defendants argue that the suit represents exactly the kind of case that the Private Securities Litigation Reform Act of 1995 aimed to eliminate, using a "puzzle pleading" formula to mount claims of fraud that lack specificity or grounding in the...
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