|[July 16, 2014]
Hagens Berman Announces Securities Fraud Investigation against Lions Gate Entertainment and Sept. 9, 2014, Lead Plaintiff Deadline
SAN FRANCSICO --(Business Wire)--
Hagens Berman Sobol Shapiro LLP, an investor-rights law firm, has
launched a securities fraud investigation against Lions Gate
Entertainment Corp. (NYSE:LGF) ("Lionsgate" or "the Company") following
allegations that the film studio giant lied to its shareholders about
the company's transactions which prompted a probe from the Securities
and Exchange Commission (SEC (News - Alert)). Hagens Berman alerts investors of the
Sept. 9, 2014, deadline to file for lead plaintiff.
Investors who purchased Lionsgate stock between Feb. 11, 2013, and March
13, 2014 (the "Class Period"), may contact Hagens Berman Partner Reed
Kathrein, who is leading the firm's investigation, by calling
510-725-3000, emailing LGF@hbsslaw.com
or visiting http://hb-securities.com/investigations/LGF.
The complaint filed in the U.S. District Court for the Southern District
of New York on July 11, 2014, alleges that unbeknownst to the company's
shareholders, Lionsgate made a series of transactions designed to
prevent a company takeover from shareholder and founder of Icahn
Enterprises Carl Icahn. While the transactions caused Lionsgate to fall
under an investigation from the SEC, the film studio allegedly chose to
mislead investors about the true purpose of these transactions and
failed to inform investors about the SEC's investigation.
Lionsgate publicly stated that the transactions were "a key part of the
Company's previously announced plan to reduce its total debt, as well as
its nearer term maturities," while the SEC investigation found that
Lionsgate had not announced any such debtreduction plan, according to
Lionsgate shares dropped 3.19 percent or $1 per share on March 13, 2014,
and fell 9 percent or about $3 per share between March 12, 2014, and
March 17, 2014, following news of the SEC's investigation. The stock is
currently trading around $29 per share.
"While drama is typically for the silver screen, Lionsgate brought its
share of drama to investors when it withheld the truth about its
dealings and caused undue risk from false and misleading statements,"
said Mr. Kathrein. "Transparency and honesty are paramount
responsibilities that a publicly traded company has to its investors,
and we believe Lionsgate has outright failed in both of these respects."
According to the complaint, Icahn began a series of tender offers in
March 2010 and intended to take over the company by increasing
ownership, allowing him to appoint new members to the Lionsgate board of
Lionsgate's management and board of directors sought to block Icahn's
plans, according to the complaint. The suit states that on July 20,
2010, the board - with management's assistance - approved and
facilitated transactions that placed more than 16 million shares of LGF
stock in the hands of director Mark Rachesky and/or entities he
controlled, diluting the interests of other Lionsgate shareholders,
Upon allegedly misleading investors about the nature of the
transactions, Lionsgate received a cease and desist order from the SEC.
Lionsgate settled the investigation, paying $7.5 million in fines and
acknowledging that it had violated federal securities laws.
The deadline to file for lead plaintiff in the securities fraud class
action is Sept. 9, 2014.
Persons with non-public information regarding Lionsgate should consider
their options to help in the investigation or take advantage of the SEC
Whistleblower program. Under the new SEC Whistleblower program,
whistleblowers who provide original information may receive rewards
totaling up to 30 percent of any successful recovery made by the SEC.
For more information, call Reed Kathrein at 510-725-3000 or email LGF@hbsslaw.com.
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law
firm with offices in nine cities. The firm represents investors,
whistleblowers, workers and consumers in complex litigation. More about
the firm and its successes can be found at www.hb-securities.com.
Read the firm's Securities Newsletter at http://www.hb-securities.com/newsletter.
The firm's blog is located at www.meaningfuldisclosure.com.
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