NEW YORK and OKLAHOMA CITY, June 6, 2012 /PRNewswire/ -- Notice is hereby given that Grant & Eisenhofer P.A. has filed a class action lawsuit asserting claims under the Securities Exchange Act of 1934 on behalf of those who purchased or otherwise acquired shares of Chesapeake Energy Corp. (NYSE: CHK, "Chesapeake " or the "Company") between and including April 30, 2009 and May 10, 2012. This Complaint extends the class period beyond the April 17, 2012 end date alleged in the initial class action complaint filed against Chesapeake on April 26, 2012, styled as Dvora Weinstein and Steven S. Weinstein v. Aubrey K. McClendon and Chesapeake Energy Corp., Case No. Civ-12-465-W (W.D.Ok.). The deadline for class members to move to serve as lead plaintiff is June 25, 2012.
The Complaint alleges that Chesapeake's Chief Executive Officer, Aubrey K. McClendon ("McClendon"), obtained over a billion dollars of Company assets pursuant to the Company's Founders Well Participation Program ("FWPP") and borrowed over $1.5 billion dollars against his well interests, presenting material risks to the Company that were not disclosed.
In addition to McClendon, the Complaint names as defendants other individuals—members of the Company's Board of Directors and Senior Executives—who compounded the fraud by failing to stop and concealing McClendon's improper activities.
Beginning April 18, 2012, Defendants' alleged fraud was revealed to the market in a series of investigative reports published by Reuters, the Wall Street Journal and other news media. On April 18, 2012, Reuters reported that McClendon had acquired a huge stake in the Company's numerous oil and gas wells and had borrowed as much as $1.1 billion, later reported to be $1.55 billion, against his stake in the Company's wells. As a result of these and other disclosures, the Company's stock plunged, dropping from its April 17, 2012 close at $19.12 to close on May 11, 2012 at $14.81.
If you are a member of the class described above, you may, no later than June 25, 2012, move the Court to serve as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. However, your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Grant & Eisenhofer represents institutional investors and shareholders internationally in securities class actions, corporate governance actions and derivative actions. The Firm has recovered more than $13 billion for shareholders in the last five years and has consistently been cited by RiskMetrics for securing among the highest average investor recovery in securities class actions. Grant & Eisenhofer has been named one of the country's top plaintiff's law firms by The National Law Journal for the past six years.
For more information about Grant & Eisenhofer visit www.gelaw.com.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Grant & Eisenhofer (John C. Kairis) at (302) 622-7000 or [email protected] before June 25, 2012.
John C. Kairis, Esquire
Grant & Eisenhofer
123 Justison Street
Wilmington, DE 19801
Ph: (302) 622-7000
SOURCE Grant & Eisenhofer