Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Lions Gate Entertainment Corp.

The law offices of Robbins Geller & Dowd today announced that a class action suit is filed on behalf of in the United States District Court of New York on behalf of purchasers of Lions Gate Entertainment Corp. (“Lionsgate” or the “Company”) (NYSE:LGF). The suit is seeking to pursue remedies against the Company and certain of its current and former officers and directors under the Securities Exchange Act of 1934 (the “Exchange Act”) Lions Gate Entertainment Corp produces and distributes motion pictures, television and digital media. Lions Gate Entertainment Corp 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 designed to prevent a takeover of the Company by Carl Icahn and his affiliates, however, Lions Gate Entertainment Corp and the other defendants failed to disclose the existence of the SEC investigation.
Icahn commenced his takeover of the Company by increasing his ownership interest in Lions Gate Entertainment Corp but threatened by the possibility of losing control of the Company Lions Gate’s Board of Directors sought to block Icahn’s plans by placing over 16 million shares of common stock in the hands of director Mark Rachesky and diluting the interests of other shareholders, including Icahn. Thereafter, Lions Gate Entertainment Corp publicly announced a plan to reduce its total debt, as well as its nearer term maturities.” In fact, the SEC found, Lions Gate Entertainment Corp had not announced any such debt-reduction plan. Moreover, Lions Gate Entertainment Corp failed to adequately disclose the true purpose of the reduction: while the whole purpose was to stifle Icahn’s takeover attempts. Following the public announcement of the Transactions, Lions Gate Entertainment Corp 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, which memorialized the resolution of the investigation and charges against Lions Gate Entertainment Corp for making false and misleading disclosures. As detailed in the Order, and alleged in the complaint, Lions Gate Entertainment Corp settled the investigation by agreeing to pay $7.5 million in fines and acknowledging that it had violated the federal securities laws. Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history, including the largest jury verdict ever in a securities class action