Mark Cuban Companies to Face Fraud Claim Over Landmark Theatres

Affiliates of billionaire Mark Cuban hit a hurdle in their quest for $3 million held back by Cohen Exhibition Co. when it bought Landmark Theatres, with a Delaware Chancery Court judge ruling that Cuban’s companies must face a fraud claim stemming from the $149 million deal.

“Although the allegations supporting buyer’s claims for fraud” are “thin, they are sufficient to plead a claim,” Vice Chancellor Paul A. Fioravanti Jr. wrote.

The lawsuit stems from disagreements over the post-closing financial condition of the arthouse cinema chain, which Cohen—owned by billionaire Charles C. Cohen—acquired from Roma Landmark Theaters LLC and MCC ...