Chesapeake Energy (CHK) Private Jet Lawsuit. Concerned about Jet Abuse? Tired of CEO Abuse?



Our law firm is investigating whether Chesapeake Energy (CHK) is properly reporting CEO McLendon's, and the directors personal use of the corporate aircraft. From our review it appears that Chesapeake has under reported or misclassified the extent of personal use of corporate aircraft.

Chesapeake has fractional ownership in Netjets - making it more difficult to figure out which flights the Company's Jets have made. But our law firm has analyzed the disclosures and found issues that should be of interest to shareholders.

Chesapeake's disclosures about the use of the Company's jets for personal purposes raises many troubling questions. The 2011 Proxy Statement reveals that:

- In 2010, CEO McLendon incurred $500,000 in personal aircraft use, after incurring $450,000 and $650,000 in 2008 and 2009. In fact, in 2010, he voluntarily reimbursed the Company $375,000 - otherwise it would have been closer to $875,000.
- But it wasn't just McLendon - other officers incurred between $200,000 and $680,000 in personal aircraft use.
- And it's not just officers - unusually the DIRECTORS are allowed to fly using Netjets to attend board meetings, and in addition, are allowed 40 hours of personal use of Netjets per year (!), with the result that some of the directors incurred personal aircraft use expenses close to $200,000 in 2010.

Thus the amount of expenses for personal use by McLendon, Officers and Directors of the Company’s corporate aircraft are possibly non compliant with SEC filings.  Over the last several years, it appears that Chesapeake has potentially under-reported Executive perks between 2007 through 2010 for Jet Travel.

We would like to speak to shareholders interested in investigating this matter.  

Do you own shares of CHK? Concerned about CEO Private jet shareholder abuse? call our law firm now. Please call Attorney Bill Kyros at 1-800-934-2921 to discuss your rights. We are looking for Shareholders in Chesapeake Energy who wish to bring legal claims. We are also interested in speaking to shareholders who wish to pursue claims against other companies for similar abuse.