AMC Shares Surge on Court Ruling, With New Settlement Filed
- Conversion plan’s changes focus on waivers cited as too broad
- Judge’s rejection of accord Friday sent AMC’s shares soaring
An employee cleans an auditorium at the AMC Lincoln Square 13 movie theater in New York.
Photographer: Jeenah Moon/BloombergThis article is for subscribers only.
AMC Entertainment Holdings Inc. shares rose as much as 42% on Monday after a surprise court ruling Friday scuttled a stock conversion plan the cinema chain has now revised.
The company and investors leading a lawsuit over the plan filed a revision of a nine-figure settlement over the weekend in Delaware Chancery Court to address problems identified by Judge Morgan Zurn. The ruling, in which Zurn found that the original deal waived too many potential claims against the company, stunned some investors and analysts, who had expected her to sign off on the proposed class action settlement.