Chesapeake Energy CEO Sued by Shareholders

Originally published at Fox Business. Chesapeake Energy Corp CEO Aubrey McClendon has been sued by a shareholder over potential conflicts of interest, after a Reuters report showed he had borrowed as much as $1.1 billion against his stake in thousands of company wells. The loans, taken out over the past three years, were previously undisclosed to shareholders, analysts and academics said, raising concerns that McClendon's personal financial deals could compromise his fiduciary duty to Chesapeake. McClendon's biggest personal lender, EIG Global Energy Partners, has also been a big financier to Chesapeake and the lawsuit says that some analysts believe EIG's investors have been given favorable terms from the company on financing deals. McClendon and the company have said there is no conflict. Chesapeake did not return calls seeking comment on Friday. Continue reading this article here.