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Chesapeake Suit Can Be Heard in State Court

A state appeals court has ruled that an antitrust lawsuit against an Oklahoma City-based oil and natural gas company can be heard in state court.

The Oklahoma Court of Civil Appeals last week reversed a trial court's earlier ruling that dismissed the state proceedings against Chesapeake Energy Corp. and agreed with the company the lawsuit should go to federal court.

The Oklahoman reports that the appeal court's reversal means the case will be sent back to trial court. A parallel case is ongoing in Oklahoma City federal court.

Chesapeake admitted in 2016 that it violated federal antitrust law and has cooperated with the U.S. Department of Justice investigation.

Because of the company's cooperation, Chesapeake qualifies for leniency and in federal court is limited to claims of only actual damages.