Chesapeake Energy Corporation (NYSE:CHK): Closing price $22.60
Chesapeake must face an lawsuit in Ohio concerning claims that it underpaid gas royalties for years, according to an appeals court. The lawsuit was brought as a class action on behalf of Ohio leaseholders, and alleges that a Chesapeake predecessor firm commenced by 1993 to “deliberately and fraudulently underpay the full gas royalty due,” and that the present company continued the practice subsequent to taking over the leases in 2005. An Ohio trial court turned aside the lawsuit in 2010, citing a state law that mandates the filing of such claims within four years after the cause of action occurs. The United States Court of Appeals in Cincinnati reversed that decision on Wednesday, agreeing with the plaintiffs that allegations of continuing underpayment means that the claims are not time-barred.
Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now.