Myers v. The 401(k) Fiduciary Committee for Seventy-Seven Energy, Inc., No. CIV-17-200-D (W.D. Okla. 2017)
Plaintiff brought this class action in the United States District Court for the Western District of Oklahoma on February 24, 2017, on behalf of herself and all participants in the Seventy Seven Energy Inc. Retirement & Savings Plan (the “Plan”). Plaintiff alleges that the fiduciaries of the Plan improperly decided to allow the investment of Plan assets in the stock of Chesapeake Energy Corp., even though investment in a single-company stock fund is extremely risky – a risk that was compounded because Chesapeake Energy stock has the volatility common to the oil and gas industry. Seventy Seven Energy Inc., the employer and sponsor of the Plan, was created in 2014 when Chesapeake Energy spun off Chesapeake Oilfield Operating, L.L.C., which had been a wholly-owned subsidiary, creating a new, entirely separate and unaffiliated entity.