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Investigations  /  12.05.2018

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

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Please Note: Neither the submission to nor the receipt of information by Robbins Arroyo LLP or one of its attorneys through this website constitutes an agreement by our firm to represent the individual and does not create an attorney-client relationship. Please do not send confidential or sensitive information through this website. This information should be communicated through a direct contact with an individual at the firm.

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