NEW YORK, Aug. 22, 2014 /PRNewswire/ -- 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
SOURCE Pomerantz LLP