The law firm is investigating potential violations of the Employee Retirement Income Security Act (ERISA) relating to the plan’s investments.
Liner is concerned the plan’s fiduciaries may have breached their fiduciary duties of loyalty and prudence to the plan’s participants by offering Chesapeake stock and/or other inappropriate funds as plan investment options. A breach also may have occurred if the fiduciaries withheld or concealed material information from the plan’s participants with respect to the company’s business, financial results, and operations, thereby encouraging participants and beneficiaries to continue to make and maintain substantial investments of company stock in the plan.
The Oklahoma City-based company’s shares have dropped 48% in the past year. The effect of falling gas prices has been compounded by Chief Executive Officer Aubrey McClendon’s use of personal stakes in the company’s wells to obtain loans.
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