CMX Cinemas Accused of Using Pandemic as Pretext to Break Deal

Cinemex Holdings USA Inc., which operates CMX Cinemas, was hit with a lawsuit seeking to block it from using the Covid-19 pandemic “as a pretext for walking away from” a deal to acquire a Houston-area movie theater chain.

“Far from being unforeseen, the potential impact of the coronavirus was a significant factor discussed by the parties during their negotiation,” the suit says. “Cinemex was even able to extract a multi-million-dollar reduction in the purchase price.”

The case was filed Thursday in the Southern District of Texas by Omar Khan, owner of Star Cinema Grill, which Cinemex agreed to acquire at ...