Multiple Lawsuits Against Chesapeake for Alleged Securities Fraud

wild-kingdomWe remember watching Marlin Perkins on “Mutual of Omaha’s Wild Kingdom” growing up. For the younger generations, it was a TV program roughly the equivalent of watching today’s Discovery channel. In particular we remember watching a wildebeest being taken down by a pack of jackals. The jackals would watch for an advantage–a wildebeest that was old and slow, or wounded, or maybe too young to keep up with the herd. They would single it out and one after another jump on it to bring it down. That’s the image that floated through our heads as we noticed a sudden surge of law firms filing class action lawsuits against Chesapeake Energy. No, these lawsuits have nothing to do with Chesapeake shorting landowners in their royalty checks–there’s already a bunch of those lawsuits. These lawsuits are new and stem from the recent announcement that the U.S. Department of Justice, Securities and Exchange Commission and even the U.S. Postal Service have launched investigations into Chesapeake (see Everybody Just Subpoenaed Chesapeake Energy for Everything). The suspicion is that Chesapeake may have engaged in securities fraud by making misleading or false statements that led investors to buy or sell stocks, bonds and debts in the company. With blood drawn (i.e. government suspicion and investigation), a plethora (at least 10) law firms have jumped on the back of the beast and are attempting to bring it down…

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