AMC Entertainment Holdings, Inc. Provides Settlement Notice
- AMC Entertainment Holdings, Inc. has received preliminary approval for a proposed settlement in a civil action regarding 'short-swing' profits under Section 16(b) of the Securities Exchange Act of 1934.
- The settlement involves recovering alleged profits realized by the Antara Defendants in connection with their purchases and sales of AMC securities.
- Plaintiffs Dennis J. Donoghue and Mark Rubenstein, both AMC shareholders, brought the civil action for the benefit of AMC.
- A federal court in New York has scheduled a hearing on May 2, 2024, to consider final approval of the proposed settlement.
- If finally approved, AMC stands to receive $3,300,000 from the Antara Defendants, who will then be released from claims of violations of Section 16(b) of the Exchange Act.
- The settlement notice has been made available on the Investor Relations section of AMC's website for public access.
- None.
Insights
The preliminary approval of a settlement concerning alleged 'short-swing' profits under Section 16(b) of the Securities Exchange Act of 1934 by a federal court represents a significant legal development for AMC Entertainment Holdings, Inc. This statute is intended to prevent corporate insiders from profiting on information not available to the public by buying and selling their company's stock within a six-month period. The settlement, if finalized, would result in a payment of $3.3 million to AMC from the Antara Defendants, which could positively affect AMC's financial position. It also demonstrates the company's commitment to upholding shareholder interests and the enforcement of securities laws, which could potentially enhance investor confidence.
From a financial perspective, the $3.3 million settlement in AMC's favor may not represent a substantial sum relative to the company's overall market capitalization. However, it is crucial to consider the potential implications for AMC's stock price. The news of a settlement can be perceived positively by the market as it removes legal uncertainty and potential liabilities. Additionally, it may be indicative of a proactive stance by the company's management in safeguarding shareholder value. Investors and analysts will be monitoring the final approval of the settlement and any subsequent financial impact on AMC's quarterly results.
The broader market impact of this legal settlement for AMC is nuanced. While the direct financial benefit is clear, the settlement also signals to the market that AMC is an active participant in monitoring and addressing corporate governance issues. This can have a ripple effect in the industry, prompting other companies to scrutinize similar transactions more closely. Over the long term, this could contribute to a more transparent market environment, potentially affecting investor sentiment and the valuation of companies within the sector.
The court will hold a hearing on May 2, 2024 at 1:15 p.m. in Courtroom 12B at the Daniel Patrick Moynihan United States Courthouse, 500 Pearl Street,
The settlement notice has been posted to the Investor Relations section of AMC’s website at https://investor.amctheatres.com/notice-03-12-2024.
About AMC Entertainment Holdings, Inc.
AMC is the largest movie exhibition company in
Website Information
This press release, along with other news about AMC, is available at www.amctheatres.com. We routinely post information that may be important to investors in the Investor Relations section of our website, https://investor.amctheatres.com/ . We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD, and we encourage investors to consult that section of our website regularly for important information about AMC. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document. Investors interested in automatically receiving news and information when posted to our website can also visit https://investor.amctheatres.com/ to sign up for email alerts.
Forward-Looking Statements
This communication includes “forward-looking statements” within the meaning of the federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “may,” “will,” “forecast,” “estimate,” “project,” “intend,” “plan,” “expect,” “should,” “believe” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions and speak only as of the date on which they are made. Examples of forward-looking statements include statements we make regarding the settlement and any approval thereof. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors, and are based on information available at the time the statements are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks, trends, uncertainties and other facts that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. For a detailed discussion of risks, trends and uncertainties facing AMC, see the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as thereafter amended, and Form 10-Q for the quarter ended September 30, 2023, each as filed with the SEC, and the risks, trends and uncertainties identified in the Company’s other public filings. The Company does not intend, and undertakes no duty, to update any information contained herein to reflect future events or circumstances, except as required by applicable law.
Category: Company Release
View source version on businesswire.com: https://www.businesswire.com/news/home/20240312414685/en/
INVESTOR RELATIONS:
John Merriwether, 866-248-3872
InvestorRelations@amctheatres.com
MEDIA CONTACTS:
Ryan Noonan, (913) 213-2183
rnoonan@amctheatres.com
Source: AMC Entertainment Holdings, Inc.
FAQ
What is the nature of the civil action mentioned in the press release involving AMC (AMC) and the Antara Defendants?
Who are the plaintiffs in the civil action mentioned in the press release involving AMC (AMC) and the Antara Defendants?
When is the scheduled hearing to consider final approval of the proposed settlement in the civil action involving AMC (AMC) and the Antara Defendants?
What is the amount that AMC (AMC) stands to receive if the proposed settlement is finally approved?
Where can the settlement notice regarding the civil action involving AMC (AMC) and the Antara Defendants be accessed?
