Chesapeake Energy 1997 Annual Report Download - page 32

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Frank M. Zacco v. Chesapeake Energy Corporation, Aubrey K. McClendon, Thomas L. Ward,
Marcus C. Rowland, Shannon T. Self Walter C. Wilson, Henry J. Hood, Steven C. Dixon, and J. Mark
Lester, filed in the U.S. District Court for the Western District of Oklahoma on September 5, 1997.
Jeff Lezak v. Chesapeake Energy Corporation, Aubrey K. McClendon, Thomas L. Ward, Marcus C.
Rowland, Shannon T. Self Walter C. Wilson, Henry J. Hood, Steven C. Dixon, and J. Mark Lester, filed
in the U.S. District Court for the Western District of Oklahoma on September 9, 1997.
Lisabeth Dolwig v. Chesapeake Energy Corporation, Aubrey K. McClendon, Marcus C. Rowland,
Shannon T. Self Walter Wilson, Ronald Lefaive, and J. Mark Lester, filed in the U.S. District Court for
the Western District of Oklahoma on September 11, 1997.
Leslie Joseph Klein IRA v. Chesapeake Energy Corporation, Aubrey K. McClendon, Thomas L.
Ward, Marcus C. Rowland, Shannon T. Self Walter C. Wilson, Henry J. Hood, Steven C. Dixon, and
J. Mark Lester, filed in the U.S. District Court for the Western District of Oklahoma on
September 15, 1997.
Elmo G. Hubble v. Chesapeake Energy Corporation, Aubrey K. McClendon, Marcus C. Rowland,
Shannon T. Self and Walter Wilson, filed in the U.S. District Court for the Southern District of Texas,
Houston Division, on September 17, 1997.
Jamie Gottleib, et al. v. Chesapeake Energy Corporation, Aubrey K. McClendon, Thomas L. Ward,
Marcus C. Rowland, Shannon T. Self Walter C. Wilson, Henry J. Hood, Steven C. Dixon, and J. Mark
Lester, filed in the U.S. District Court for the Western District of Oklahoma on September 18, 1997.
David S. Winston v. Chesapeake Energy Corporation, A ubrey K. McClendon, Thomas L. Ward,
Marcus C. Rowland, Shannon T. Self Walter C. Wilson, Henry J. Hood, Steven C. Dixon, and J. Mark
Lester, filed in the U.S. District Court for the Western District of Oklahoma on September 23, 1997.
Michael Spindle, et al. v. Chesapeake Energy Corporation, Aubrey K. McClendon, Marcus C.
Rowland, Shannon T. Self Walter Wilson, Ronald Lefaive and J. Mark Lester, filed in the U.S. District
Court for the Western District of Oklahoma on September 24, 1997.
Robert Markewich v. Chesapeake Energy Corporation, A ubrey K. McClendon, Thomas L. Ward,
Marcus C. Rowland, Shannon T. Self Walter C. Wilson, Henry J. Hood, Steven C. Dixon, and J. Mark
Lester, filed in the U.S. District Court for the Western District of Oklahoma on September 25, 1997.
The plaintiffs assert that the defendants made materially false and misleading statements and failed to
disclose material facts about the success of the Company's exploration efforts, principally in the Louisiana
Trend. As a result, the complaints allege, the price of the Company's common stock was artificially inflated
during periods beginning as early as January 25, 1996 and ending on June 27, 1997, when the Company issued
a press release announcing disappointing drilling results in the Louisiana Trend and a full-cost ceiling
writedown to be reflected in its June 30, 1997 financial statements. The plaintiffs further allege that certain of
the named individual defendants sold common stock during the class period when they knew or should have
known adverse nonpublic information. Each case seeks a determination that the suit is a proper class action,
certification of the plaintiff as a class representative and damages in an unspecified amount, together with costs
of litigation, including attorneys' fees. The Company and the individual defendants believe that these actions
are without merit, and intend to defend against them vigorously.
On October 15, 1996, Union Pacific Resources Company ("UPRC") filed suit against the Company in
the U.S. District Court for the Northern District of Texas, Fort Worth Division alleging (a) infringement and
inducing infringement of UPRC's claim to a patent (the "UPRC Patent") for an invention involving a
method of maintaining a borehole in a stratigraphic zone during drilling, and (b) tortious interference with
certain business relations between UPRC and certain of its former employees. UPRC's claims against the
Company are based on services provided by a third party vendor to the Company. UPRC is seeking injunctive
relief, damages of an unspecified amount, including actual, enhanced, consequential and punitive damages,
interest, costs and attorneys' fees. The Company believes that it has meritorious defenses to UPRC's
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