SHAREHOLDER ALERT: Pomerantz Law Firm Announces the Filing of a Class Action Against Lions Gate Entertainment Corp. and Certa...
July 21 2014 - 6:54PM
Pomerantz LLP has filed a class action lawsuit against Lions Gate
Entertainment Corp. ("Lions Gate" or the "Company") (NYSE:LGF) and
certain of its officers. The class action, filed in United
States District Court, Southern District of New York, and docketed
under 14-cv-5477, is on behalf of a class consisting of all persons
or entities who purchased Lions Gate securities between February
11, 2013 and March 13, 2014, inclusive (the "Class Period").
This class action seeks to recover damages against Defendants for
alleged violations of the federal securities laws under the
Securities Act of 1933 (the "Securities Act") and the Securities
Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Lions Gate securities
during the Class Period, you have until September 9, 2014 to ask
the Court to appoint you as Lead Plaintiff for the class. A
copy of the Complaint can be obtained at www.pomerantzlaw.com.
To discuss this action, contact Robert S. Willoughby at
rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, x237. Those who inquire by e-mail are encouraged to include
their mailing address, telephone number, and number of shares
purchased.
Lions Gate, an entertainment company, is engaged in motion
picture production and distribution, television programming and
syndication, home entertainment, family entertainment, digital
distribution, new channel platforms, and international distribution
and sales activities.
The Complaint alleges that by the start of the Class Period,
Lions Gate was under investigation by the U.S. Securities and
Exchange Commission ("SEC") for making false and misleading
statements and omissions concerning a series of transactions
("Transactions") designed to prevent a takeover of the Company by
Carl Icahn and his affiliates ("Icahn"). During the Class Period,
however, Lions Gate and the other defendants misrepresented and/or
failed to disclose the existence of the SEC investigation, the
prospect of legal proceedings associated with the misconduct under
investigation, and the Company's exposure to loss in connection
therewith.
In March 2010, Carl Icahn ("Icahn") commenced a series of tender
offers intended to facilitate his takeover of the Company by
increasing his ownership interest in Lions Gate and allowing him to
designate his chosen representatives to the Company's Board of
Directors ("Board"). Threatened by the possibility of losing
control of the Company or being replaced, Lions Gate's management
and the Board sought to block Icahn's plans.
On July 20, 2010, the Board - with management's assistance -
approved and facilitated the Transactions, which resulted in
placing over 16 million shares of common stock in the hands of
director Mark Rachesky and/or entities he controlled ("Rachesky")
while diluting the interests of other Lions Gate shareholders,
including Icahn. Rachesky was a staunch supporter of Lions
Gate management and the Board.
Thereafter, Lions Gate publicly represented that the
Transactions were "a key part of the Company's previously announced
plan to reduce its total debt, as well as its nearer term
maturities." In fact, the SEC found, Lions Gate had not announced
any such debt-reduction plan. Moreover, Lions Gate failed to
adequately disclose the true purpose of the Transactions: to stifle
Icahn's takeover attempts. Following the public announcement of the
Transactions, Lions Gate continued to misrepresent their true
purpose to investors.
On March 13, 2014, the SEC issued an Order Instituting
Cease-and-Desist Proceedings Pursuant to Section 21C of the
Securities Exchange Act of 1934, Making Findings, and Imposing a
Cease-and-Desist Order ("Order"), which memorialized the resolution
of the investigation and charges against Lions Gate for making
false and misleading disclosures regarding the Transactions. As
detailed in the Order, Lions Gate settled the investigation by,
among other things, agreeing to pay $7.5 million in fines and
acknowledging that it had violated the federal securities laws.
The Pomerantz Firm, with offices in New York, Chicago, Florida,
and San Diego, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L. Pomerantz, known as the dean of the
class action bar, the Pomerantz Firm pioneered the field of
securities class actions. Today, more than 70 years later, the
Pomerantz Firm continues in the tradition he established, fighting
for the rights of the victims of securities fraud, breaches of
fiduciary duty, and corporate misconduct. The Firm has recovered
numerous multimillion-dollar damages awards on behalf of class
members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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