Accused of conspiring to suppress competition for oil and gas leases in northern Oklahoma two years ago, Oklahoma City’s Chesapeake Energy and former SandRidge Energy CEO Tom Ward have agreed to pay nearly $7 million to settle a class-action lawsuit.
The suit was filed in Oklahoma City federal court in 2016 against Chesapeake, Ward and SandRidge Energy, accusing them of violating the Sherman Antitrust Act in northwest Oklahoma. SandRidge Energy was later dismissed after it filed for chapter 11 bankruptcy reorganization.
The Oklahoman reported Thursday on the tentative agreement offered by Chesapeake and Tom Ward. It indicated Chesapeake offered to pay $2.65 million while Ward would pay $4.3 million. The total settlement would be for $6.95 million and Chesapeake and Ward did not admit to wrongdoing.
They had been accused of underpaying on leases in northwestern Oklahoma when they allegedly coordinated the bids.
The lawsuit had been filed after former Chesapeake CEO Aubrey McClendon had been indicted by the Justice Department. He was accused of conspiring to suppress and eliminate competition by rigging bids for certain lease. But the government dropped the indictment following McClendon’s death in a traffic accident in March 2016.