Recent Corporate Aircraft Litigation Raises SEC Perquisite Disclosure Issues

By on August 15, 2012

by Andrew C. Liazos, Ira B. Mirsky, Anne G. Plimpton and Ruth Wimer

A recent shareholder derivative action alleges that the directors of Chesapeake Energy breached their fiduciary duties to shareholders by, among other things, misleading shareholders about the true extent and true cost of personal use of the company’s aircraft.  The complaint raises questions about disclosure practices that could affect how public companies determine the aggregate cost of perquisites on proxy statements.  It appears that the plaintiffs’ bar is already targeting potential plaintiffs for similar cases using the lure of whistleblower recoveries.

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