AMC stock slumps, 'APEs' jump after litigation deal

Closed signs are seen on an AMC Theatre during the outbreak of the coronavirus disease , in New York City, U.S., April 29, 2020. REUTERS/Brendan McDermidshares tumbled 24% in extended trade on Monday, while its preferred shares jumped 21% after the movie theater chain said it agreed to settle litigation and proceed with converting its preferred stock into common shares.

AMC investors suing the company accused it and several of its directors of violating a law by creating the preferred shares in an attempt to "eviscerate" the voting power of common stockholders who had not supported issuing new shares. AMC said that as part of the settlement, it has agreed to pay the plaintiffs one share for every 7.5 shares they own. In a separate press release, plaintiffs lawyers said they expected the shares paid to their clients to be worth over $100 million.

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AMC Theatres Settles Shareholder Lawsuit Over Reverse Stock Split PlansThe settlement payment is potentially valued at over $100 million, based on recent share prices for the mega-exhibitor, according to law firms representing stockholders. AMC did not need to do this and wouldn't have unless there's a Part 2 to this story. I believe there is a Part 2, and it may involve an acquisition move that inevitably will lead to $AMC $APE both going into SQUEEEEEEZE MOASS mode. WATCH!!! DO NOT GET PLAYED APES!!!
Source: THR - 🏆 411. / 53 Read more »