AMC Shares Surge on Court Ruling, With New Settlement Filed (3)

AMC Entertainment Holdings Inc. shares rose as much as 42% on Monday after a surprise court ruling Friday scuttled a stock conversion plan the cinema chain has now revised.

The company and investors leading a lawsuit over the plan filed a revision of a nine-figure settlement over the weekend in Delaware Chancery Court to address problems identified by Judge Morgan Zurn. The ruling, in which Zurn found that the original deal waived too many potential claims against the company, stunned some investors and analysts, who had expected her to sign off on the proposed class action settlement.

WATCH: A ruling blocks AMC’s plans for a stock conversion.

Source: Bloomberg