An AMC Entertainment Holdings Inc. investor will end a lawsuit demanding a board election at the movie theater chain now that the company has scheduled its first general shareholder meeting in over a year.
AMC scheduled its annual meeting Nov. 8, the company announced earlier this week.
The parties have agreed to dismiss the litigation in Delaware’s Court of Chancery with prejudice, according to a filing Friday from the investor’s attorney, Elizabeth Sloan of Ballard Spahr LLP.
The lawsuit was filed in July amid a separate shareholder case over AMC’s APE units. A nine-figure settlement approved Aug. 11 cleared the way for AMC to enact a plan to convert its preferred stock to common shares. The company said the APE units will cease trading on Aug. 25.
One of the thousands of objecting retail investors has asked the Delaware Supreme Court to stop the conversion pending an appeal. The Chancery Court denied a motion to stay the conversion.
AMC did hold a special meeting March 14, with the Chancery Court’s permission, at which stockholders and APE owners approved its initial plan to convert the units.
Separately, another AMC investor filed a lawsuit in Chancery Court this week alleging the settlement shortchanges APE holders.
AMC also has sued its insurers in Delaware Superior Court for refusing to fund the settlement.
The case is Barnes v. AMC Ent. Holdings Inc., Del. Ch., No. 2023-0718, 8/18/23.
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