A judge ruled that Chesapeake Energy will not have to open its books to shareholder group, the Louisiana Municipal Police Employees’ Retirement System, reports the Associated Press. Oklahoma County District Judge Daniel Owens denied the shareholder group’s request to examine the company’s books to determine why the firm’s board awarded a bonus to CEO Aubrey McClendon after reporting extensive losses. Judge Owens said that much of the information sought by the shareholders’ group is available in public documents and delving beyond that could result in hurting the company in the marketplace. “You’re telegraphing to the community that there is potential mismanagement and wrongdoing,” he said, which “could result in a stock price drop.” Marc Gross, a New York-based attorney for the shareholders’ group, said that the ruling was “nothing short of a bailout for McClendon.”
Chesapeake Won’t Have to Open Books to Shareholders
Shareholder group failed to convince a federal judge to force Chesapeake Energy to open its books.