| COMPANY |
AMC Entertainment Holdings Inc. |
| COURT |
United States District Court for the Southern District of New York |
| CASE NUMBER |
18-cv-00299 |
| JUDGE |
Honorable Alison Julie Nathan |
| CLASS PERIOD |
December 20, 2016 - August 1, 2017 |
| SECURITY TYPE |
Common Stock |
Case Background:
On January 12, 2018, the initial complaint in this securities class action was filed against AMC Entertainment Holdings Inc. (“AMC” or the “Company”), and certain of AMC’s directors and officers, asserting violations of Sections 10(b) and 20(a) of the Securities Exchange Act. This is a federal securities class action lawsuit brought on behalf of all persons and entities who purchased or otherwise acquired: (1) the common stock of AMC pursuant or traceable to its secondary public offering on or about February 8, 2017; and (2) all persons and entities who purchased or acquired the publicly traded common stock of AMC between December 20, 2016 and August 1, 2017, (“Class Period”) both dates inclusive.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose adverse facts regarding the Company's business and prospects in its Registration Statement and Prospectus regarding Carmike Cinemas, Inc.'s revenue growth and omitted material facts and included materially inaccurate statements associated with AMC's newly acquired international business. Specifically, the complaint alleges that Defendants failed to disclose that: (1) Carmike's operations had been experiencing a prolonged period of financial underperformance due to a protracted period of underinvestment in its theaters; (2) Carmike had experienced a significant loss in market share when its loyal patrons migrated to competitors that had renovated and upgraded their theaters; (3) AMC was able to retain only a very small number of Carmike's loyalty program members after the Carmike acquisition; (4) these issues were then having a material adverse effect on Carmike's operations and theater attendance; and (5) as a result of Defendants' false statements and/or omissions, the price of AMC common shares was artificially inflated during the Class Period, trading above $35 per share.
Current Status of Case:
Plaintiffs filed a second amended class action complaint (the “Amended Complaint”) on November 21, 2018. On January 22, 2019, Defendants filed a Motion to Dismiss the Amended Complaint. On September 23, 2019, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss. On March 2, 2020, Plaintiffs filed their Motion for Class Certification. On March 30, 2021 Plaintiff’s’ Motion to Certify Class was granted. On September 3, 2021, the parties advised the Court that they had agreed in principle to resolve the matter. On February 14, 2022 the Court fully approved the Settlement. This action has concluded.
You may find additional information regarding the terms of the settlement and claim filing process at: https://www.strategicclaims.net/amc/, or by calling Strategic Claims Services at 1-866-274-4004.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.