SAN DIEGO and SANTA MONICA, Calif., July 15, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Lions Gate Entertainment Corp. (NYSE: LGF) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of New York. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between February 11, 2013 and March 13, 2014 (the "Class Period"). Lions Gate is a film studio that produces and distributes motion pictures, television, home and family entertainment, and digital media.
Lions Gate Investigated by the U.S. Securities and Exchange Commission
According to the complaint, shares of Lions Gate dropped by nearly 9%, or $2.93 per share, between March 12, 2014 and March 17, 2014, to close at $30.33 per share on March 17, 2014, following an announcement that Lions Gate had received 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. Specifically, the order disclosed that Lions Gate settled a U.S. Securities and Exchange Commission investigation of a series of transactions the company undertook to prevent a takeover of the company by Carl Icahn and his affiliates, by agreeing to pay $7.5 million in fines and acknowledging that it had violated federal securities laws.
The complaint further alleges that Lions Gate knew and failed to disclose that it was under SEC investigation and that the NYSE had initiated an inquiry as to whether the transactions constituted a violation of Section 312.03(b) of the NYSE Listed Company Manual in regards to shareholder approval of the transactions.