Oregon Public Employees Retirement System seeks to be lead plaintiff in class action against Chesapeake Energy

June 26, 2012 by

On June 25, 2012, the Oregon Public Employees Retirement System filed documents seeking to be named lead plaintiff in a class action lawsuit alleging securities fraud against Chesapeake Energy. 

The lawsuits arise out of revelations about CEO Aubrey McClendon, his perks and compensation, and certain business strategies he pursued to his own benefit and the detriment of the company.  Mr. McClendon took $1.1 billion in loans against personal stakes in the company’s oil and gas wells he obtained under the Founder’s Well Participation Program.  To bail himself out of financial problems, and maximize his own gains, Mr. McClendon pursued an aggressive expansion strategy for Chesapeake and piled on enormous debt through off-balance sheet arrangements that were not disclosed on the company’s balance sheet. 

He also borrowed from firms that transacted business with Chesapeake, creating huge conflicts of interest.  Mr. McClendon additionally ran a lucrative business on the side: a $200 million hedge fund that traded in the same commodities that Chesapeake produces from the company’s offices.

Steve Larson
An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, consumer cases, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, employment matters, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve's clients value his creative approach to resolving complex litigation matters.

Legal Disclaimer

The information contained in this blog does not constitute legal advice, and does not create an attorney-client relationship. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this blog.