AMC Investors Sue Antara Capital Over Short-Swing APE Profits

Antara Capital LP, which holds roughly 30% of the controversial APE preferred units issued by AMC Entertainment Holdings Inc., is facing federal securities litigation seeking the return of its alleged short-swing profits.

The lawsuit, filed by two AMC investors, accuses the hedge fund, its affiliates, and founder Himanshu Gulati of making more than $20 million on sales of APE units and AMC common stock purchased less than six months earlier. Federal securities laws require corporate leaders and major stockholders to give such short-swing profits back to the company, a rule meant to curb insider trading.

Antara didn’t immediately respond ...