AMC investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, AMC is principally involved in the theatrical exhibition business and owns, operates or has interests in theaters located in the United States and Europe.
On December 21, 2016, AMC completed the acquisition of Carmike Cinemas, Inc. (“Carmike”) for $858.2 million, comprising $584.3 million in cash and $273.9 million in common stock. In connection with the Carmike acquisition, AMC also assumed $230 million in debt. On the same day AMC completed its acquisition of Carmike, December 21, 2016, the company filed with the SEC a Form S-3 shelf registration statement. On February 9, 2017, AMC filed with the SEC a prospectus for the SPO offering to register for sale 21,904,761 common shares to be issued by AMC at a price of $31.50 per share. The company sold 20,330,874 common shares to the public in the SPO and received net proceeds of approximately $618 million therefrom. At the time the complaint was filed, AMC common shares were trading at approximately $14 per share, less than half of the SPO price of $31.50 per share.
According to the complaint, on August 1, 2017, after the close of the market, AMC issued a press release announcing its preliminary financial results for the Second Quarter 2017. The press release announced that AMC expected to report total revenues of approximately $1.2 billion and a net loss in the range of $178.5 to $174.5 million, or a loss of $1.36 to $1.34 per diluted share. The press release also announced that AMC’s 2017 revenues were expected to be between $5.10 and $5.23 billion and its 2017 net loss to be between $150 and $125 million, or a loss of $1.17 to $0.97 per diluted share.
Following this news, the price of AMC common stock fell nearly 27%, on heavy trading volume, falling from $20.80 per share on August 1, 2017 to $15.20 per share on August 2, 2017.
The complaint alleges that during the Class Period, the defendants misrepresented and failed to disclose, among other things, the following adverse facts: (a) that the operations of Carmike had been experiencing a prolonged period of financial underperformance due, in large part, to a protracted period of underinvestment in its theaters; (b) that Carmike had experienced a significant loss in market share when its loyal patrons migrated to competitors that had renovated and upgraded their theaters; (c) that AMC was able to retain only a very small number of Carmike’s loyalty program members after the Carmike acquisition; and (d) that, as a result of the foregoing, the defendants lacked a reasonable basis for their positive statements about AMC’s then-current business and future financial prospects, including their statements relating to AMC’s financial guidance, as well as the cost synergies associated with the “flawless” integration of Carmike.
If you are a member of the class described above, you may no later than March 13, 2018 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at email@example.com. For more information about Kessler Topaz Meltzer & Check, LLP, please visit our website at http://www.ktmc.com. If you would like additional information about the suit, please fill out the attached form as promptly as possible and return it by fax to 610-667-7056, or by mail in the enclosed envelope.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at firstname.lastname@example.org