NEW YORK, Feb. 27, 2009 (GLOBE NEWSWIRE) -- The Brualdi Law Firm, P.C. announces that a lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of those who purchased Chesapeake Energy Corporation ("Chesapeake" or the "Company") (NYSE:CHK) stock pursuant to the registration statement and prospectus (collectively, the "Registration Statement") filed with the Securities and Exchange Commission in connection with Chesapeake's July 2008 secondary offering (the "Offering").
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased Chesapeake securities in pursuant and/or traceable to the Company's July 2008 Offering and wish to move the court for appointment of lead plaintiff, you must do so by April 27, 2009. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You do not need to seek appointment as a lead plaintiff in order to share in any recovery.
To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Sue Lee at The Brualdi Law Firm, P.C. 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1187 or (212) 952-0602, by email to slee@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com.
The Complaint charges that Chesapeake and certain of its officers and directors violated federal securities laws. Specifically, the Registration Statement issued in connection with the Offering was materially false because it failed to disclose the following: (i) Chesapeake's exposure to natural gas price declines had not been adequately limited by Chesapeake's hedging actions prior to the Offering; (ii) that Chesapeake had entered into hedging contracts with Lehman Brothers, an underwriter in the offering, though based on Lehman Brothers' rapidly declining financial condition, it would be unable to fulfill its financial commitment; (iii) prior to the Offering, Chesapeake's aggressive hedging activities had been significantly running up the price of natural gas and Chesapeake's stock price; (iv) Chesapeake's lease brokers, had been aggressively bidding up the prices Chesapeake was obligated to pay in leases and royalty agreements; and (v) Chesapeake was failing to write down impaired goodwill on the assets it was acquiring.