This notice relates to a proposed voluntary dismissal of a shareholder
derivative action and is being given pursuant to an order of The U.S.
District Court for the Western District of Oklahoma. The purpose of the
notice is to advise Chesapeake Energy Corporation (“Chesapeake” or the
“Company”) shareholders that plaintiffs Jacob Shochat and Norman Spiegel
in the above referenced action wish to voluntarily dismiss the case.
Additional information on the action and right to intervene can be found
below.
Between April 20, 2012 and June 28, 2012, thirteen shareholder
derivative actions were filed in the United States District Court for
the Western District of Oklahoma, all of which were consolidated on July
13, 2012, into a single related action entitled In re Chesapeake
Energy Corporation 2012 Shareholder Derivative Litigation, Case. No.
CIV-12-436-M (the “Derivative Action”). The Derivative Action alleges
causes of action for breaches of fiduciary duty by directors and
officers of Chesapeake related to their purported willful disregard of
alleged conflicted, wrongful activities of former CEO Aubrey McClendon
that violated corporate policies and his fiduciary duties and their
waste of corporate assets. The alleged wrongful activities included: (i)
McClendon’s $1.1-$1.3 billion in loans from related Company partners in
order to finance his participation in a corporate incentive program
called the Founders Well Participation Program; (ii) McClendon active
management of a hedge fund he co-founded, Heritage Management Company
LLC, out of the offices of the Company’s CEO and Chairman at the same
time he was solely responsible for managing Chesapeake’s $17 billion
hedge facility and running Chesapeake; (iii) the termination of
McClendon without cause and conflicted investigation into McClendon’s
activities; and (iv) the problematic replacement of the Company’s Board.
This notice of the proposed voluntary dismissal of the Derivative Action
will be posted in the Investor Relations section of Chesapeake’s website
for 30 days. Chesapeake shareholders are hereby advised:
Chesapeake shareholders may intervene and continue prosecution of the
Derivative Action as a named plaintiff, with their counsel as lead
counsel for plaintiffs. Any shareholder who wishes to intervene must
file a motion with the U.S. District Court for the Western District of
Oklahoma, 200 NW 4th Street, Oklahoma City, Oklahoma, 73102, not later
than September 21, 2015. Any motion to intervene must be filed in
writing, and must include: (i) the caption of the Derivative Action;
(ii) the name of the shareholder; (iii) proof or certification of the
date the intervening shareholder purchased Chesapeake stock, and that
the intervening shareholder has held its shares continuously since the
date of purchase; and (iv) a statement of the basis for the intervention.
![](http://cts.businesswire.com/ct/CT?id=bwnews&sty=20150821005072r1&sid=ntxv4&distro=nx&lang=en)
View source version on businesswire.com: http://www.businesswire.com/news/home/20150821005072/en/
Copyright Business Wire 2015