AMC settles lawsuit over alleged short-swing profits

© Reuters

LEAWOOD, Kan. – AMC Entertainment (NYSE:) Holdings, Inc. (NYSE: AMC) announced today that a federal court in New York has granted preliminary approval to a settlement in a lawsuit accusing certain investors of improperly profiting from trading the company’s securities. The lawsuit, aimed at recovering so-called “short-swing” profits under Section 16(b) of the Securities Exchange Act of 1934, was brought by AMC shareholders Dennis J. Donoghue and Mark Rubenstein against a group of defendants collectively known as the Antara Defendants.

The Antara Defendants, including Antara Capital Master Fund LP and associated entities, along with individual Himanshu Gulati, have agreed to pay AMC $3.3 million, pending final court approval. The settlement, if finalized, will also absolve the Antara Defendants of any further claims related to the alleged violations.

A hearing is scheduled for May 2, 2024, where the court will consider the final approval of the proposed settlement. The hearing will take place at the Daniel Patrick Moynihan United States Courthouse in New York.

The preliminary settlement marks a step forward in resolving the claims that the Antara Defendants engaged in transactions that resulted in illegal profits at the expense of the company and its shareholders. AMC, the largest movie exhibition company globally with about 900 theaters and 10,000 screens, is party to the suit in name only and the action was brought for its benefit.

The details of the proposed settlement have been made available to the public on the Investor Relations section of AMC’s website, where the company routinely posts information that may be important to investors.

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