Pomerantz Haudek Grossman & Gross LLP Updates Class Action Filed Against Chesapeake Energy Corporation

Pomerantz Haudek Grossman & Gross LLP announced that it has filed a securities class action the federal District Court in Oklahoma City on behalf of all persons who purchased Chesapeake Energy Corporation common stock between April 30, 2009 and April 17, 2012. The case was filed against the Company and its Chief Executive Officer and Chairman, Aubrey K. McClendon . The original claims focused on McClendon's undisclosed $1 billion plus leveraging of his interests in Chesapeake's Founders Well Program. While the program was intended to align McClendon's interests with shareholders, McClendon's leveraging, particularly through entities financing the Company's enormous debt load, placed him in conflict with those shareholders. The degree of Chesapeake's undisclosed risks was further evidenced by Russell Gold's Wall Street Journal article exposing the Company's off balance sheet liabilities for over $1.2 billion in costs associated with wells whose production rights have been sold as part of the Volumetric Production Payment program. In essence, Chesapeake has sold off its rights for future revenues from certain wells in return for monies to pay off its outsized debt, leaving the Company still liable to pay for the operating costs of these wells. News of these additional liabilities drove the price of Chesapeake stock down to $14.81 at the close of trading, down 22.5% from the close on April 17 prior to all these revelations.