NEW YORK, Aug. 8, 2014 (GLOBE NEWSWIRE) -- 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 email@example.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. WilloughbyPomerantz LLPrswilloughby@pomlaw.com
Source: Pomerantz LLP