OKC-Based Chesapeake Shareholder Sues over Corporate Jet Usage

By Brianna Bailey; Sarah Terry-Cobo | THE JOURNAL RECORD, May 9, 2012 | Go to article overview
Save to active project

OKC-Based Chesapeake Shareholder Sues over Corporate Jet Usage

Brianna Bailey; Sarah Terry-Cobo, THE JOURNAL RECORD

A Chesapeake Energy shareholder claims in a lawsuit that the company has vastly understated how much executives and directors use corporate jets for personal travel by as much as $10 million per year.

Virginia resident Gilberta Norris filed the derivative shareholder lawsuit in Oklahoma County District Court on Tuesday, claiming that Chesapeake executives and directors have been using the company's fractionally owned aircraft for personal trips to the tune of millions more than what was reported for the past five years.

Between 2007 and 2011, Chesapeake executives and directors reported to shareholders at least $13.8 million in personal aircraft usage.

However, Chesapeake has reported only the variable costs of executives' and directors' personal aircraft usage and not any fixed costs, Norris claims in her lawsuit.

"Thus, for years, shareholders have been kept in the dark as to the size of these fixed costs, and the true, aggregate cost of Chesapeake's aircraft," the lawsuit claimed.

Fixed costs of the aircraft include a monthly management fee for things such as pilot salaries, training, hangar costs, maintenance expenditures and insurance, among other things, the lawsuit claims.

The information from the lawsuit came from a shareholder demand to inspect company records, which is permitted in certain cases under Oklahoma law, said New York City-based attorney Hung G. Ta, who is representing Norris in the lawsuit.

Portions of the lawsuit with details of how certain travel costs have been omitted from the company's official reports have been redacted because of a confidentiality agreement Norris made with the company as part of her demand to inspect company records.

Ta and his clients are considering asking the court to unseal the redacted portions of the lawsuit, he said.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Cite this article

Cited article

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

OKC-Based Chesapeake Shareholder Sues over Corporate Jet Usage


Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?