RHI Entertainment, Inc Hit By Shareholder Lawsuit

JULY 2011 - According to the Notice:

Statement of Class’s Recovery: Pursuant to the Settlement described herein, a Settlement Amount consisting of $2.5 million in cash has been deposited in an interest bearing Escrow Account for the benefit of the Class. As discussed below, claims were asserted under the Securities Act of 1933 (the “Securities Act”). A Class Member’s actual recovery will be determined in accordance with the Plan of Allocation set forth on pages 4-6 below, if the Court approves the plan. The Court may modify the proposed Plan of Allocation or adopt a different plan, without further notice to the Class.

Security and Time Period: RHI common stock (stock symbol: RHIEQ.PK) purchased or acquired pursuant and/or traceable to RHI’s initial public offering on or about June 19, 2008 (“IPO”) through November 6, 2008, inclusive (the “Class Period”).

Settlement Fund: $2,500,000 in cash. Your recovery will depend on the number of shares of RHI common stock you, and other Class Members who file claims, purchased or acquired. The estimated average recovery per share of common stock will be approximately $0.19 per damaged share before deduction of Court-approved fees and expenses and costs of notice and claims administration.

SEPTEMBER 2009 - An investor in RHI Entertainment, Inc. (NasdaqGM: RHIE) filed a lawsuit in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of RHI Entertainment, Inc. (Nasdaq:RHIE) pursuant and/or traceable to its initial public offering on or about June 19, 2008, against RHI Entertainment, Inc. (Public, NASDAQ:RHIE) and others over alleged violations of Federal Securities Laws.

According to the complaint the plaintiff alleges that RHI Entertainment and certain of its executives violated the Securities Act of 1933 issuing numerous positive statements regarding its financial condition, business and prospects. On or about June 13, 2008, RHI Entertainment filed with the United States Securities and Exchange Commission (“SEC”) a Form S-1/A Registration Statement for the IPO. On or about June 19, 2008, the Prospectus with respect to the IPO, which forms part of the Registration Statement, became effective and, including the exercise of the over-allotment, more than 13.5 million shares of RHI’s common stock were sold to the public, thereby raising more than $189 million. The plaintiff alleges that the description of RHI Entertainment’s business in the Registration Statement created the materially misleading impression that at the time of the IPO RHI Entertainment had orders for 40 MFT movies and mini-series which had been paid for, were in production and would be delivered in the later half of the year. The complaint further alleges that these statements were materially false and misleading because defendants failed to disclose that, given the declining state of the credit markets and other negative factors then impacting the Company’s business, the Company would not be able to complete 40 MFT movies and miniseries in 2008.

RHI Entertainment, Inc., located in New York, NY, develops, produces and distributes new made-for-television movies, mini-series and other television programming worldwide. The Company provides long-form television content, including domestic made-for-television (MFT), movies and mini-series. RHI Entertainment, Inc reported in 2007 Total Revenue of $232.01million and in 2008 Total Revenue of $226.44million. Shares of RHI Entertainment, Inc. (NasdaqGM: RHIE) traded recently at $2.94 per share and were down from its 52weekHigh of $15.03 per share.