NEW YORK, NY —”A shareholder of embattled natural-gas giant Chesapeake Energy Corp. accused the company of understating the cost of personal jet travel provided to top executives and outside directors by as much as $10 million per year.
In a lawsuit filed in state court in Oklahoma City, the shareholder claims that Chesapeake directors misled investors by stating in regulatory filings that personal use of company aircraft was ‘limited’ and that the company’s fleet of jets was used ‘primarily’ for business travel.
The suit claims Chesapeake’s top executives’ extensive use of fractional-jet time circumvented public reporting rules, which generally require companies to report to shareholders the cost of their executives’ personal travel aboard company aircraft.”
— Mark Maremont and Daniel Gilbert, Wall Street Journal
— Carrick Mollenkamp, Reuters
— Moody’s Investors Service
— Russ Choma, OpenSecrets blog