Carmike Cinemas, Inc. (NASDAQ:CKEC) Investor Filed Lawsuit Against Acquisition By AMC Theatres

If you purchased shares of Carmike Cinemas, Inc. (NASDAQ:CKEC) and currently hold any of those NASDAQ:CKEC shares, you have certain options and you 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): 
Carmike Cinemas
Case Name: 
Carmike Cinemas Deal Case 04/28/2016
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: CKEC
Lawsuit Overview
Type of Lawsuit: 
Mergers and Acquisition
Date Filed: 
04/28/2016
Summary: 

May 03, 2016 (Shareholders Foundation) - An investor who currently holds shares of Carmike Cinemas, Inc. (NASDAQ:CKEC), filed a lawsuit in effort to halt the proposed takeover of Carmike Cinemas, Inc. by AMC Theatres for $30.00 per share.

The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:CKEC stockholders by agreeing to sell Carmike Cinemas, Inc too cheaply via an unfair process to AMC Theatres

On March 3, 2016, AMC Theatres (AMC Entertainment Holdings, Inc.) (NYSE: AMC) and Carmike Cinemas, Inc. (NASDAQ:CKEC) announced they have entered into a merger agreement pursuant to which AMC Theatres will acquire all of the outstanding shares of Carmike Cinemas, Inc. (NASDAQ:CKEC) for $30.00 per share in cash.

However, plaintiff claims that the proposed consideration NASDAQ:CKEC shareholders will receive is grossly inadequate and undervalues Carmike Cinemas, Inc. Indeed, at least one analyst has set the high target price for NASDAQ:CKEC shares at $36.00 per share and NASDAQ:CKEC shares traded in early 2015 as high as $34.55 per share. Furthermore, Carmike Cinemas, Inc. reported that its annual Total Revenue rose from $533.91 million in 2012 to $804.37 million in 2015. Shares of Carmike Cinemas, Inc. (NASDAQ:CKEC) reached in 2014 as high as $35.91 per share. In addition, the plaintiff alleges that the process is also unfair to Carmike Cinemas, Inc stockholders.