Chesapeake and McClendon Estate Settle Differences Over Proprietary Data

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Oklahoma City-based Chesapeake Energy Corporation and the estate of Aubrey McClendon have agreed to settle a multimillion-dollar dispute, according to a report by The Oklahoman.

Chesapeake filed a civil lawsuit in Oklahoma County District Court on February 17, 2015 against American Energy Partners L.P. alleging McClendon committed acts of corporate theft by misappropriating highly sensitive maps and prospect data considered to be trade secrets. While remaining at Chesapeake, McClendon allegedly forwarded blind carbon copies of emails containing proprietary information to his private email account as he began to form competing business ventures.

Chesapeake has agreed to pay $3.25 million in legal fees and dropped claims for $445 million under the terms of the settlement.

In return, the McClendon estate agreed to drop its claims on remaining compensation, including cash, stock and use of Chesapeake’s corporate jet, according to the report.

“We are pleased that the matter has been resolved to the satisfaction of all parties,” said Gordon Pennoyer, a spokesman for Chesapeake.

McClendon asserted that he had a legal right to the data pursuant to his involvement with the Founders Well Participation Program

McClendon died in a single car accident less than a year later on March 2, 2016.