AMC Faces Class-Action Lawsuit and Stock Value Plummets
AMC Entertainment is facing a new class-action lawsuit from preferred shareholders challenging its stock conversion plan, just days after settling a separate legal battle with another group of investors. The cinema operator recently obtained court approval for a settlement in a class-action lawsuit by common stockholders, allowing it to convert its preferred stock to common shares. However, a holder of the preferred stock claims that the settlement shortchanges them and violates the certificate of designation governing AMC's preferred stock. The lawsuit adds to the company's ongoing legal troubles, which have included objections to shareholder class-action settlements.
