AMC’s Saga Over APE Settlement With Investors: Explained

AMC Entertainment Holdings Inc. investors have been on a wild ride in recent days after a flurry of developments in a blockbuster shareholder case against the theater chain, starting with a surprise court ruling July 21 that temporarily scuttled a nine-figure legal settlement.

1. What’s the Litigation All About?

AMC was one of several high-profile businesses—including GameStop Corp. and Bed Bath & Beyond Inc.—rescued by retail investors in 2021 from a bankruptcy driven by long-term trends that the Covid-19 pandemic had accelerated.

The “meme stock” rally briefly drove AMC’s stock price to astronomical levels. After it fell back to ...