Shareholder Investigation of AMC
AMC Entertainment Holdings, Inc. (AMC) Accused of Misrepresentations in its Secondary Public Offering Prospectus
According to the complaint related to the company’s secondary public offering on February 8, 2017, and violations of the Securities Exchange Act by AMC’s officers and directors between December 20, 2016 and August 1, 2017, in late 2016, AMC acquired Carmike Cinemas, Inc. and subsequently held a secondary public offering in February 2017, selling over 21 million shares at a price of $31.50 per share and raising $618 million. Although AMC represented to investors that the integration was running smoothly, the acquisition had taken a significant toll on AMC. In fact, AMC failed to retain Carmike’s loyalty program members and experienced a substantial loss in market share when its patrons migrated to competitors that had renovated their theaters. As a result, AMC’s capital resources and operating results were negatively impacted. On August 1, 2017, AMC announced disappointing preliminary financial results for Q2 2017, causing AMC’s stock to plummet nearly 27%, closing at $15.20 per share on August 2, 2017. AMC’s stock currently trades at $14.26, less than half the secondary public offering price.
AMC Entertainment Holdings, Inc. (AMC) Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can please send us a message via the Shareholder Information form below.