Law Firm Johnson & Weaver, LLP Investigates Chesapeake Energy Corp. For Securities Fraud

Law Firm Johnson & Weaver, LLP announced that it is investigating whether certain officers and directors of Chesapeake Energy Corp. breached their fiduciary duties and committed securities fraud. Johnson & Weaver, LLP’s investigation focuses on potential self-dealing by the Company’s Chief Executive Officer, Aubrey McClendon. Specifically, on April 18, Reuters reported that McClendon had “an unusual corporate perk that allows him to invest in a 2.5% interest in every well the company drills.” According to Reuters, McClendon has borrowed up to $1.1 billion against his personal ownership stakes in wells owned by the Company. At least $500 million of these loans have come from private equity firm EIG Global Energy Partners, which has also provided financing to Chesapeake. The fact that McClendon secured loans from EIG raises concerns about whether he obtained the terms possible for Chesapeake. Indeed, the Reuter’s article quoted several experts' opinions that the “size and nature of the loans raise questions about whether McClendon's personal financial deals could compromise his fiduciary duty to Chesapeake investors.” An April 19 article in the Wall Street Journal, quoted Argus Research’s belief that 'the best thing for investors would be to replace the board and/or the CEO.'