SAN DIEGO, CA / ACCESSWIRE / February 16, 2018 / The Shareholders Foundation, Inc. announces that a lawsuit was filed for certain investors in AMC Entertainment Holdings Inc (NYSE: AMC) shares.
Investors, who purchased shares of AMC Entertainment Holdings Inc (NYSE: AMC) in December 2016 or earlier and continue to hold any of your NYSE: AMC shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779-1554.
On November 30, 2016, AMC Entertainment Holdings Inc completed the acquisition of the outstanding equity of Odeon and UCI Cinemas Holdings Limited ("Odeon") for $637 million. As of the acquisition date, Odeon operated 242 theaters with 2,243 screens throughout Europe. On December 21, 2016, AMC Entertainment Holdings Inc completed the acquisition of Carmike Cinemas, Inc. ("Carmike") for $858.2 million. As of the acquisition date, Carmike operated 271 theaters and 2,923 screens located in 41 states across the United States.
The plaintiff claims that the defendants failed to disclose that Carmike's operations had been experiencing a prolonged period of financial underperformance due to a protracted period of underinvestment in its theaters, that Carmike had experienced a significant loss in market share when its loyal patrons migrated to competitors that had renovated and upgraded their theaters, that AMC was able to retain only a very small number of Carmike's loyalty program members after the Carmike acquisition, that these issues were then having a material adverse effect on Carmike's operations and theater attendance and that as a result of defendants' false statements and/or omissions, the price of AMC common shares was artificially inflated between December 20, 2016 and August 1, 2017, trading above $35 per share.
In addition, the complaint alleges that between December 20, 2016 and August 1, 2017, defendants made false and misleading statements and/or failed to disclose adverse facts regarding AMC's business and prospects. Specifically, the complaint alleges that defendants failed to disclose that Carmike's operations had been experiencing a prolonged period of financial underperformance due to a protracted period of underinvestment in its theaters, that Carmike had experienced a significant loss in market share when its loyal patrons migrated to competitors that had renovated and upgraded their theaters, that AMC Entertainment Holdings Inc was able to retain only a very small number of Carmike's loyalty program members after the Carmike acquisition, and that these issues were then having a material adverse effect on Carmike's operations and theater attendance. As a result of defendants' false statements and/or omissions, the price of AMC common shares was artificially inflated between December 20, 2016 and August 1, 2017, trading above $35 per share.
Those who purchased AMC Entertainment Holdings Inc (NYSE: AMC) shares should contact the Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
CONTACT:
Shareholders Foundation, Inc.
Michael Daniels
+1 (858) 779-1554
mail@shareholdersfoundation.com
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
SOURCE: Shareholders Foundation, Inc.
