AMC Accused of Misrepresentations in its Secondary Public Offering Prospectus

According to the complaint, on December 21, 2016, AMC completed its acquisition of Carmike Cinemas, Inc., noting AMC's newly enhanced growth potential and that AMC had a solid understanding of Carmike's customer visitation trends. On February 9, 2017, AMC sold 20,330,874 common shares to the public for $31.50 per share, for a total of $618 million (the "SPO"). The complaint alleges that AMC inaccurately portrayed Carmike's revenue growth and operations and failed to disclose the material changes that were having an adverse effect on Carmike's business at the time of the SPO. On August 1, 2017, AMC announced disappointing preliminary financial results for Q2 2017, causing AMC's stock to plummet nearly 27%, closing at $15.20 per share on August 2, 2017. AMC's stock currently trades at $13.25, less than half the SPO price of $31.50 per share.