NEW YORK, Sept. 4, 2014 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that shareholder class actions have been filed in the United States District Court for the Southern District of New York against Lions Gate Entertainment Corp. (NYSE:LGF) ("Lions Gate" or "the Company") on behalf of investors who purchased Lions Gate stock between February 11, 2013 and March 13, 2014 (the "Class Period").
If you purchased Lions Gate securities during the Class Period, you may, no later than September 9, 2014 request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaints allege that Lions Gate carried out multiple transactions intended to stop a hostile takeover led by shareholder and founder of Icahn Enterprises, Carl Icahn. These transactions caused Lions Gate to be subject to an investigation by the SEC, and according to the complaints, Lions Gate allegedly chose to mislead investors about the true purpose of these transactions and failed to inform investors about the SEC's investigation.
Lions Gate reportedly told shareholders 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." However, according to the complaints, the SEC investigation found that Lions Gate had not announced any such debt-reduction plan. Lions Gate settled with the SEC, paying $7.5 million in fines and acknowledging that it had violated federal securities laws.
Following the news of the settlement, Lions Gate shares fell 9 percent, or about $3 per share, between March 12, 2014 and March 17, 2014.
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