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NYSE:AMC Shareholder Notice: Lawsuit Alleges Misleading Statements by AMC Entertainment Holdings Inc

Via: ReleaseWire

Updated 11:15 AM CST, Mon, January 29,2018

A lawsuit was filed on behalf of investors in AMC Entertainment Holdings Inc (NYSE:AMC) shares over alleged securities laws violations.

San Diego, CA -- (SBWIRE) -- 01/29/2018 -- The Shareholders Foundation announces that an investor, who purchased NYSE:AMC shares filed a lawsuit against AMC Entertainment Holdings Inc over alleged Securities Laws violations in connection with certain allegedly false and misleading statements.

Investors who purchased shares of AMC Entertainment Holdings Inc (NYSE:AMC) should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Theplaintiff alleges on behalf of purchasers of AMC Entertainment Holdings Inc (NYSE:AMC) Class A common shares during the period between December 20, 2016 and August 1, 2017, including purchasers in the Company's secondary public offering on or about February 8, 2017, that the defendants violated Federal Securities Laws. More specifically, 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.

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.

On December 21, 2016, AMC Entertainment Holdings Inc filed a shelf Registration Statement with the SEC to permit the Company to offer and sell AMC Entertainment Holdings Inc common shares.

On February 9, 2017, AMC Entertainment Holdings Inc filed the Prospectus for the SPO, which incorporated the Registration Statement. Pursuant to the Registration Statement and Prospectus, AMC Entertainment Holdings Inc sold 20.3 million common shares at $31.50 per share, raising nearly $640 million. The complaint alleges that the Registration Statement and Prospectus included materially inaccurate statements regarding the revenue growth of its newly acquired Carmike business and omitted material facts and included materially inaccurate statements associated with AMC Entertainment Holdings Inc's newly acquired international business.

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.

On August 1, 2017, after the close of the market, AMC Entertainment Holdings Inc announced its preliminary second quarter 2017 financial results, disclosing that it expected to report total second quarter revenues of approximately $1.2 billion and a net loss in the range of $178.5 to $174.5 million, or a loss of $1.36 to $1.34 per diluted share. AMC Entertainment Holdings Inc also announced that its 2017 revenues were expected to be between $5.10 and $5.23 billion and its 2017 net loss to be between $150 and $125 million, or a loss of $1.17 to $0.97 per diluted share. In response to the results, the price of AMC Entertainment Holdings Inc common shares fell nearly 27% in one day to close at $15.20 per share on August 2, 2017, or more than 50% below the price at which the shares were sold in the SPO.

Those who purchased shares of AMC Entertainment Holdings Inc (NYSE:AMC) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

For more information on this press release visit:
http://www.sbwire.com/press-releases/nyseamc-shareholder-notice-lawsuit-alleges-misleading-statements-by-amc-entertainment-holdings-inc-923278.htm

Media Relations Contact
Michael Daniels
858-779-1554
Email: Click to Email Michael Daniels
Web: http://www.ShareholdersFoundation.com