AMC Entertainment Holdings Inc (NYSE:AMC) Investor Securities Class Action Lawsuit 01/12/2018

If you purchased a significant amount of shares of AMC Entertainment Holdings Inc (NYSE:AMC) between December 20, 2016 and August 1, 2017 and/or in the Company’s secondary public offering on or about February 8, 2017, and / or if you purchased any NYSE:AMC shares prior to December 2016and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: March 13, 2018. NYSE:AMC investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
AMC Entertainment
Case Name: 
AMC Entertainment Shareholder Class Action Lawsuit 01/12/2018
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: AMC
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
01/12/2018
Class Period Begin: 
12/20/2016
Class Period End: 
08/01/2017
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
03/13/2018
Summary: 

An investor in shares of AMC Entertainment Holdings Inc (NYSE:AMC) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by AMC Entertainment Holdings Inc in connection with certain allegedly false and misleading statements made between December 20, 2016 and August 1, 2017.

According to the complaint the plaintiff 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.

Leawood, KS based AMC Entertainment Holdings Inc reported that its annual Total Revenue rose from over $2.94 billion in 2015 to over $3.23 billion in 2016 and that its Net Income increased from $103.86 million in 2015 to $111.67 million in 2016.

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 during the Class Period, 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.