A Chesapeake bid rigging lawsuit is expected after a former CEO of the company was indicted on federal charges of conspiring to rig bids for the purchase of oil and natural gas leases in northwest Oklahoma. Leaseholders affected by these alleged anti-competitive practices may be eligible to pursue claims for compensation.
If you owned an oil and gas leasehold or executed a lease on a producing property in Oklahoma between December 2007 and March 2012, contact Attorney Group for Texas today. Our consultations are free, confidential and without any obligation on your part. We can help answer your questions, and if you choose to pursue a claim we can connect you with an affiliated attorney who can assist you in pursuing a Chesapeake bid rigging lawsuit.
DOJ: Criminal Conspiracy Put “Profits Ahead Of The Interests Of Leaseholders”
The charges brought against former Chesapeake CEO Aubrey McClendon follow a continuing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the oil and natural gas industry.
A March 1, 2016 press release from the Department of Justice (DOJ) states that:
The indictment alleges that McClendon orchestrated a conspiracy between two large oil and gas companies to not bid against each other for the purchase of certain oil and natural gas leases in northwest Oklahoma. During this conspiracy, which ran from December 2007 to March 2012, the conspirators would decide ahead of time who would win the leases.
Leasehold interests give a lessee the right to develop the land and to extract oil and natural gas from the land for a time period typically lasting three to five years. Producing properties are tracts of land where the existing lessee has drilled wells on the land and the wells are producing a stream of oil and/or natural gas. Purchasing a producing property includes not just the underlying leasehold interests to drill on the land, but also the producing wells and infrastructure already on the land.
The former Chesapeake CEO maintained his innocence before being killed in a single car accident in Oklahoma City on March 2, 2016. Claims against his former company are expected to survive McClendon’s death.
Affected Leaseholders May Be Entitled to Pursue a Chesapeake Bid Rigging Lawsuit
Anti-competitive practices such as bid-rigging oil and gas leases are violations of the Sherman Anti-Trust Act. In addition to being illegal, subjecting violators to criminal charges, individuals harmed by the practices may be entitled pursue claims for compensation for any losses they incurred.
As noted in the DOJ press release, oil and gas leaseholders are “entitled to competitive bids for oil and gas rights on their land,” and bid-rigging can undercut the amounts that would otherwise have been paid for those rights.
Additionally, in some circumstance, persons and companies harmed by anticompetitive conduct may seek an award of triple their damages, an injunction, and costs of the action (including attorney fees) against a party that violates federal antitrust laws.
Affected leaseholders are encouraged to speak with an experienced anti-trust attorney to learn more about their rights and remedies in filing a Chesapeake bid rigging lawsuit.
Contact Us For More Information
If you owned an oil and gas leasehold or executed a lease on a producing property in Oklahoma between December 2007 and March 2012, and to learn more about a possible Chesapeake bid rigging lawsuit, contact Attorney Group for Texas. You can fill out the form on this page, call us at the number listed at the top of the page, or email us at firstname.lastname@example.org.
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