AMC’s APE Stock Conversion Affirmed Again by Delaware Court

AMC Entertainment Holdings Inc. prevailed Wednesday over a preferred shareholder’s challenge to the stock conversion plan it enacted last year amid bitter opposition from its meme stock base.

The Delaware Chancery Court dismissed the investor’s lawsuit claiming the conversion of preferred stock, known as APEs, to common shares violated anti-dilution provisions. The movie theater chain’s APE-holders “got exactly what they were entitled to” in the conversion, Vice Chancellor Morgan T. Zurn said in a bench ruling.

Zurn approved the conversion plan in August 2023, in a settlement that included extra shares for individual investors. That ruling capped months of unusually ...