real-time news and commentary for investors
Wednesday, Sep 11
Chesapeake settles with Pennsylvania landowners in royalty lawsuit
- Chesapeake Energy (CHK) agrees to pay $7.5M to settle a class-action lawsuit with Pennsylvania landowners who said it was deducting large fees from their royalty checks.
- The settlement reimburses plaintiffs who had "market enhancement" clauses in their leases, and bars CHK from deducting certain percentages of fees from plaintiffs' royalty checks in the future.
- Reuters reported last month that CHK was taking much heavier deductions from royalty checks it sent to Pennsylvania landowners, in most cases cutting compensation by more than half.