Class Action Filed Against AMC Entertainment for Securities Violations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy AMC?
Source: Globenewswire
- Class Action Initiated: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against AMC Entertainment and certain executives, seeking damages for investors who purchased APEs between August 18, 2022, and November 1, 2023, highlighting serious concerns regarding corporate governance and transparency.
- Legal Basis: The lawsuit alleges that AMC failed to disclose the constraints on APE holders' rights after the conversion to common stock, particularly a technical loophole that excluded APE holders from receiving special dividends, potentially undermining investor confidence.
- Investor Action Deadline: Affected investors must apply to be lead plaintiffs by April 20, 2026, to share in any potential recovery from the lawsuit, reflecting the importance of legal proceedings in protecting investor rights.
- No-Risk Representation: The law firm operates on a contingency fee basis, meaning they will only charge fees if they successfully recover funds, which reduces the financial burden on investors and encourages broader participation in the lawsuit to safeguard their interests.
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Analyst Views on AMC
Wall Street analysts forecast AMC stock price to rise
4 Analyst Rating
0 Buy
3 Hold
1 Sell
Hold
Current: 1.200
Low
1.30
Averages
2.02
High
3.00
Current: 1.200
Low
1.30
Averages
2.02
High
3.00
About AMC
AMC Entertainment Holdings, Inc. is a movie exhibition company. The Company is principally involved in the theatrical exhibition business and owns, operates or has interests in theatres primarily located in the United States and Europe. The Company operates through two segments: U.S. markets and International markets. In the U.S. markets segment, it owns, leases or operates theatres in 41 states and the District of Columbia. The International markets segment has operations in or partial interest in theatres in the United Kingdom, Germany, Spain, Italy, Ireland, Portugal, Sweden, Finland, Norway, and Denmark. Its brands include AMC, AMC CLASSIC and others. It also offers food and beverage alternatives beyond traditional concession items, including collectible concession vessels, made-to-order meals, customized coffee, healthy snacks, beer, wine, premium cocktails, and dine-in theatre options. It operates approximately 870 theatres and 9,700 screens across the globe.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Loan Facility Coordination: The note offering is expected to coincide with a new $750 million term loan facility, which will enhance AMC's liquidity and lay the groundwork for future financial stability.
- Clear Use of Proceeds: Proceeds from the offering will be used to redeem $400 million of Odeon Finco PLC's 12.75% senior secured notes and fully refinance AMC's existing term loan facility, thereby lowering overall debt costs.
- Redemption Conditions Set: Odeon has issued a conditional notice to fully redeem its 2027 notes, contingent upon AMC securing at least $2.48 billion in total gross proceeds from debt financing, which will directly impact AMC's financing capabilities.
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- Widening Net Loss: The company's adjusted net loss widened by 27% to $96.8 million, aligning with the $0.18 per share loss reported a year earlier; however, the 34% increase in fully diluted share count indicates ongoing dilution pressure on shareholders.
- Cash Flow Crisis: Free cash flow plummeted by 71%, and adjusted EBITDA fell by 31%, highlighting significant challenges in cost control and resource utilization that could impact future operational capabilities.
- Market Reaction: Despite AMC achieving an earnings beat during the season, the stock price did not rise, reflecting investor pessimism regarding the company's future prospects, particularly against the backdrop of a continuous decline in stock price over the past five years.
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- Customer Spending Growth: The per-patron food and beverage spending in the U.S. rose to $8.69 year-over-year, while internationally it increased from $4.80 to $5.49, reflecting AMC's positive strides in enhancing customer experience.
- Attendance Decline: Despite revenue and spending growth, U.S. and international attendance figures fell by 7.5% and 14.8%, respectively, which may pose challenges for future revenue growth.
- Debt Financing Plan: AMC's subsidiary Muvico launched a private offering of $1.73 billion in notes, intending to use the proceeds to repay high-interest debt, aiming to optimize its capital structure and reduce financial costs.
See More
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- Box Office Recovery Outlook: CEO Adam Aron highlighted the anticipated significant industry growth with upcoming blockbuster releases like Spider-Man: Brand New Day and Avengers: Doomsday, positioning AMC to capitalize on this recovery.
- Narrowed Net Loss: For the three months ended December 31, AMC's net loss narrowed to $127.4 million, or 25 cents per share, compared to a loss of $135.6 million, or 35 cents per share, in the same period last year, indicating improved financial health.
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- Debt Financing Strategy: AMC's subsidiary Muvico has launched a $1.73 billion private offering of first lien notes due in 2031, aimed at optimizing the company's debt structure and reducing interest burdens through new financing.
- Loan Facility Coordination: The note offering is expected to coincide with a new $750 million term loan facility, which will enhance AMC's liquidity and lay the groundwork for future financial stability.
- Clear Use of Proceeds: Proceeds from the offering will be used to redeem $400 million of Odeon Finco PLC's 12.75% senior secured notes and fully refinance AMC's existing term loan facility, thereby lowering overall debt costs.
- Redemption Conditions Set: Odeon has issued a conditional notice to fully redeem its 2027 notes, contingent upon AMC securing at least $2.48 billion in total gross proceeds from debt financing, which will directly impact AMC's financing capabilities.
See More
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- Revenue Performance: AMC Entertainment reported Q4 2025 revenue of $1.288 billion, a 1% decline from the previous year, yet managed to maintain relatively stable income by increasing ticket prices and high-margin concession sales despite a 10% drop in overall attendance.
- Widening Net Loss: The company's adjusted net loss widened by 27% to $96.8 million, aligning with the $0.18 per share loss reported a year earlier; however, the 34% increase in fully diluted share count indicates ongoing dilution pressure on shareholders.
- Cash Flow Crisis: Free cash flow plummeted by 71%, and adjusted EBITDA fell by 31%, highlighting significant challenges in cost control and resource utilization that could impact future operational capabilities.
- Market Reaction: Despite AMC achieving an earnings beat during the season, the stock price did not rise, reflecting investor pessimism regarding the company's future prospects, particularly against the backdrop of a continuous decline in stock price over the past five years.
See More
AMC: From Meme Stock Sensation to Cooler Times
AMC Entertainment's Struggles: The company, once a prominent meme stock, has faced challenges in regaining its market position after a surge in 2021.
Fourth-Quarter Earnings Impact: Recent fourth-quarter earnings did not succeed in rekindling interest among investors.
See More
Earnings Reports Week for Major Companies
- Earnings Reporting Schedule: This week features earnings reports from the world's largest publicly traded companies across energy, retail, and tech sectors, with investors keenly observing performance and market reactions.
- JOBY Stock Movement: JOBY stock is experiencing volatility, and investor sentiment remains cautious ahead of upcoming earnings, particularly given the broader market context.
- Lucid Group Expectations: Lucid Group is set to report after Tuesday's close, with analysts forecasting a quarterly loss of $2.64 per share on revenue of approximately $473 million, focusing on gross margin and cash runway.
- AI Infrastructure Spending: Analysts anticipate a tech company's fourth-quarter revenue of around $65.6 billion and adjusted EPS of $1.52, with the market keenly awaiting Q1 guidance and CEO insights on AI infrastructure spending.
See More
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- Revenue Performance: AMC reported Q4 revenue of $1.288 billion, down 1.4% year-over-year, yet it surpassed the market expectation of $1.269 billion, indicating the company's resilience in a competitive landscape.
- Customer Spending Growth: The per-patron food and beverage spending in the U.S. rose to $8.69 year-over-year, while internationally it increased from $4.80 to $5.49, reflecting AMC's positive strides in enhancing customer experience.
- Attendance Decline: Despite revenue and spending growth, U.S. and international attendance figures fell by 7.5% and 14.8%, respectively, which may pose challenges for future revenue growth.
- Debt Financing Plan: AMC's subsidiary Muvico launched a private offering of $1.73 billion in notes, intending to use the proceeds to repay high-interest debt, aiming to optimize its capital structure and reduce financial costs.
See More
AMC Reports Q4 Revenue and Profit Beat Amid Box Office Recovery
- Revenue and Profit Beat: AMC Entertainment reported Q4 revenue of $1.29 billion, exceeding the $1.27 billion estimate despite a 1.4% year-over-year decline, showcasing the company's strong market adaptability.
- Box Office Recovery Outlook: CEO Adam Aron highlighted the anticipated significant industry growth with upcoming blockbuster releases like Spider-Man: Brand New Day and Avengers: Doomsday, positioning AMC to capitalize on this recovery.
- Narrowed Net Loss: For the three months ended December 31, AMC's net loss narrowed to $127.4 million, or 25 cents per share, compared to a loss of $135.6 million, or 35 cents per share, in the same period last year, indicating improved financial health.
- Adjusted EBITDA: Although adjusted EBITDA fell from $164.8 million to $134.1 million, it remained in line with estimates, reflecting the company's ongoing efforts in cost control and operational efficiency.
See More
