a) there is no case. They were estimates of well production from before the wells were drilled. Absent any kind of smoking gun, nobody can say CHK knew the estimates were inflated.
b) any unitholder who participates in a suit against the trust is essentially suing themselves as any legal costs will come out of their distribution.
The fact that all the trusts (ECT, 3 Sandridge ones, WHZ, etc) are coming out with negative revisions doesn't help the case.
Again, I think there is a case that they are not meeting their fiduciary responsibility by selling gas below market value I still believe somehow CHK is in the middle of this collecting money on the spread. They need to disclose exactly where the money is going and CHK needs to disclose exactly what they knew before they sold this to the public - either through their own knowledge or knowledge gleaned from others with wells in the area.
I think there is no meaty case in the short run, as long as the distribution minimums, as laid out in the prospectus, are honored through the middle of 2017. Beyond that, the situation becomes more intangible. If there are lawsuits, you sue CHK directly, not the trust. Hence, the money would come from the managing entitiy, not the trust itself. If there is a legit suit, I think the bagholders could get a substantial amount reimbursed to them, since CHK could easily settle for a few hundred million which is chump change to them but a meaningful amount for the bagholders. JMHO!
Shareholders rarely receive much of anything in lawsuits. You are correct, it is not worth the time to receive a few pennies for each dollar.
Sad situation. The question is how far this crashes over the next month and if bottom fishers can make any money on it. Once it bottoms I am not sure what would move the price up again. If there is no appreciation potential and the unit price drops each time they pay out cash flow it is dangerous for most.