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July 14, 2014 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Lions Gate Entertainment Corp. ("Lions Gate" or the "Company") (NYSE: LGF). Such investors are advised to contact
Robert S. Willoughby at
email@example.com or 888-476-6529, ext. 237.
The investigation concerns whether Lions Gate and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
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.
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.
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
San Diego and
Florida, 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
CONTACT:Robert S. WilloughbyPomerantz LLP
SOURCE Pomerantz LLP