AMC’s Post-APE Stock Crash Reduces Attorney Fees to $5.7 Million

Lawyers who negotiated the settlement that let AMC Entertainment Holdings Inc. convert its APE preferred units into stock will take home $5.7 million—not the $20 million they had sought—after the company’s shares crashed following the conversion.

A Delaware judge, Vice Chancellor Morgan T. Zurn, handed the shareholder attorneys the seven-figure payout Monday, five weeks after she signed off on the deal that ended the bitter court fight between the theater chain’s leaders and its investors, including thousands of “meme stock” traders who powered the rally that spared AMC from a pandemic-era bankruptcy.

AMC’s shares have cratered roughly 85% since the ...