NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in AMC Entertainment Holdings, Inc. (“AMC” or the “Company”) (NYSE:AMC) of the March 13, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in AMC Entertainment Holdings, Inc. stock during the Company’s secondary public offering (the “SPO”) on or about February 8, 2017 and/or between December 20, 2016 and August 1, 2017 and would like to discuss your legal rights, click here: www.faruqilaw.com/AMC. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased AMC Class A common shares in the SPO on or about February 8, 2017 and/or purchased AMC common shares between December 20, 2016 and August 1, 2017, inclusive (the “Class Period”). The case, Hawaii Structural Ironworkers Pension Trust Fund v. AMC Entertainment Holdings, Inc. et al No. 1:18-cv-00299 was filed on January 12, 2018, and has been assigned to Judge Alison Julie Nathan.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by issuing a Form S-3 and Prospectus (jointly referred to as the “Registration Statement”) containing materially false and/or misleading information in connection with its SPO.
Specifically, on March 3, 2016, AMC announced that it had entered into a definitive merger agreement with Carmike Cinemas, Inc. (“Carmike”), under which AMC would acquire all of Carmike’s outstanding shared. The acquisition was completed on December 21, 2016. On the same day, AMC filed a Form S-3 with the U.S. Securities and Exchange Commission (“SEC”) and later filed a Prospectus with the SEC on February 9, 2017. According to the lawsuit, the Registration Statement failed to disclose that Carmike had been experiencing a significant loss in market share during the first nine months of 2016 and that this was continuing to adversely affect its operating performance.
The lawsuit also focuses on whether the Company and its executives violated federal securities laws by issuing false and/or misleading information about: (i) the operations of Carmike; (ii) the seasonality of AMC’s foreign operations; (iii) AMC’s loyalty program, AMC Stubs; (iv) AMC’s MD&A and (iv) AMC’s disclosure controls.
Specifically, on August 1, 2017, AMC announced that it expected to report a Q2 2017 net loss in the range of $178.5 to 174.5 million.
After this announcement, AMC’s share price fell from $20.80 per share on August 1, 2017 to a closing price of $15.20 on August 2, 2017—a $5.60 or a 26.92% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding AMC’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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