AMC Securities: Miller Shah Obtains $18 Million Settlement

On February 14, 2022, U.S. District Judge Alison J. Nathan granted final approval of a proposed $18 million Settlement (the “Settlement”) in a class action against AMC Entertainment Holdings, Inc. and certain executives and financial underwriters (“AMC,” the “Company,” or “Defendants”). The Settlement resolves allegations that AMC misled investors when touting the Company’s plans to acquire Carmike Cinemas, Inc. (“Carmike”), Odeon & UCI Cinema Group, and Nordic Cinema Group AB. The settlement amount covers monetary relief to the class members, awards to the lead plaintiffs, and attorneys’ fees and expenses.

This lawsuit was vigorously litigated for over three years. After Plaintiffs initiated the action on behalf of shareholders, AMC filed a motion to dismiss the complaint, arguing that Plaintiffs failed to adequately allege that any material misstatements or omissions occurred and, even if such omissions did occur, that AMC lacked actionable knowledge at the time of omission. Ultimately, the Court sustained Plaintiffs’ allegations regarding Carmike’s under-investment in its theaters and Securities Act claims based on the conversion of loyalty program members and seasonality of European business.

Following the Court’s decision on Defendants’ motion to dismiss, the parties engaged in a comprehensive discovery process, including voluminous document review and numerous depositions of witnesses. In addition, Plaintiffs moved the Court for certification of the proposed class, which the Court granted on March 30, 2021. The parties were preparing for summary judgment and trial when they agreed to settle the case.

The Court preliminarily approved the settlement on November 8, 2021, finding that the Settlement: (1) resulted from informed, extensive arm’s-length and non-collusive negotiations; (2) eliminates the risks of continued litigation; (3) does not give unduly preferential treatment to Plaintiffs or to segments of the class; (4) does not provide excessive compensation to counsel; (5) has no obvious deficiencies; and (6) falls within a range of reasonableness warranting eventual final approval.

At a final approval hearing held on February 10, 2022, the Court affirmed the reasonableness of the Settlement, attorneys’ fees of one-third of the Settlement plus an estimated $1.3 million in litigation expenses, and lead plaintiff awards of $25,842.79.

The deadline for filing a proof of claim form in this action is February 28, 2022. The form and related case materials can be accessed here.

Plaintiffs are represented by Miller Shah LLP and Robbins Geller Rudman & Dowd LLP. The case caption in this matter is Hawaii Structural Ironworkers Pension Trust Fund v. AMC Entertainment Holdings Inc. et al., Case No. 1:18-cv-00299, filed in the United States District Court for the Southern District of New York.

The legal team at Miller Shah LLP has significant experience representing securities matters. If you have any questions regarding this subject or this post, please contact Alec Berin (ajberin@millershah.com) or Jonathan Dilger (jadilger@millershah.com). The firm can also be reached toll-free at (866) 540-5505.

Miller Shah LLP is a law firm with offices in California, Connecticut, Florida, New Jersey, New York, and Pennsylvania. The firm is an active member of Integrated Advisory Group (www.iaginternational.org), which provides clients access to excellent legal and accounting resources around the globe. For more information about the firm, please visit https://www.millershah.com.

Member IAG Global

Telephone: 866-540-5505 • Fax: 866-300-7367 | Se habla Español

California – Los Angeles Area

19712 MacArthur Boulevard
Irvine, CA 92612
Map and Directions

California – San Diego

1230 Columbia Street, Suite 1140
San Diego, CA 92101
Map and Directions

California – San Francisco

3 Embarcadero Center, Suite 1650
San Francisco, CA 94111
Map and Directions

Connecticut

65 Main Street
Chester, CT 06412
Map and Directions

Florida

1625 N. Commerce Pkwy, Suite 320
Fort Lauderdale, FL 33326
Map and Directions

New Jersey

2 Hudson Place, Suite 100
Hoboken, NJ 07030
Map and Directions

New York

225 Broadway, Suite 1830
New York, NY 10007
Map and Directions

Pennsylvania

1845 Walnut Street, Suite 806
Philadelphia, PA 19103
Map and Directions

Affiliate Office –  Milan, Italy