NEW YORK--(BUSINESS WIRE)--Pomerantz LLP announces that a class action lawsuit has been filed against AMC Entertainment Holdings, Inc. (“AMC” or the “Company”) (NYSE: AMC) and certain of its officers. The class action, filed in United States District Court, for the Southern District of New York, and docketed under 18-cv-00510, is on behalf of a class consisting of investors who purchased or otherwise acquired the securities of AMC: (1) pursuant and/or traceable to AMC’s false and misleading Registration Statement and Prospectus, issued in connection with the Company’s secondary public offering on or about February 8, 2017 (the “SPO” or the “Offering”); and/or (2) on the open market between December 20, 2016 and August 1, 2017, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased AMC securities on or about February 8, 2017 the SPO or the Offering; and/or (2) on the open market between December 20, 2016 and August 1, 2017, both dates inclusive, you have until March 13, 2018, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and quantity of shares purchased.
AMC Entertainment Holdings Inc. operates as a holding company, and through its subsidiaries, provides theatrical exhibition services worldwide. On December 21, 2016, AMC completed the acquisition of Carmike Cinemas, Inc. (“Carmike”) for $858.2 million. After the acquisitions of Odeon Cinemas, UCI Cinemas and Carmike in 2016, AMC became the largest movie theater chain in the world.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Carmike’s operations had been experiencing a prolonged period of financial underperformance due to a protracted period of underinvestment in its theaters; (ii) Carmike had experienced a significant loss in market share when its loyal patrons migrated to competitors that had renovated and upgraded their theaters; (iii) AMC was able to retain only a very small number of Carmike's loyalty program members after the Carmike acquisition; (iv) these issues were then having a material adverse effect on Carmike's operations and theater attendance; and (v) as a result of Defendants' false statements and/or omissions, the price of AMC common shares was artificially inflated during the Class Period.
On August 1, 2017, post-market, AMC announced its preliminary second quarter 2017 financial results, revealing that it estimated to report total second quarter revenues of about $1.2 billion and a net loss of about $178.5 to $174.5 million, or a loss of $1.36 to $1.34 per diluted share. AMC also said that its 2017 revenues were expected to range between $5.10 and $5.23 billion and its 2017 net loss between $150 and $125 million, or a loss of $1.17 to $0.97 per diluted share.
On this news, AMC stock fell around 27% 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.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.