SAN FRANCSICO, CA--(Marketwired - Jul 28, 2014) - Hagens Berman Sobol Shapiro LLP, an investor-rights law firm, reminds investors of the Sept. 9, 2014, deadline to file for lead plaintiff in a securities fraud investigation against Lions Gate Entertainment Corp. (
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 Lionsgate carried out multiple transactions intended to stop a company takeover from shareholder and founder of Icahn Enterprises, Carl Icahn, without disclosing that information to shareholders. These transactions caused Lionsgate to fall under an investigation from the SEC, and according to the complaint, 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 reportedly told shareholders 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," yet the SEC investigation found that Lionsgate had not announced any such debt-reduction plan, according to the lawsuit.
"Lionsgate shareholders have suffered a significant loss due to a scheme that they had absolutely no knowledge about," said Mr. Kathrein. "The SEC's investigation has found that Lionsgate boldly lied to its investors about these transactions, and we remain committed to a tenacious analysis of the company to uncover the true extent of Lionsgate's dishonesty."
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 $32 per share.
According to the complaint, Icahn initiated a series of tender offers in March 2010, intending to take over Lionsgate through an increase in ownership, allowing him to appoint new members to the Lionsgate board of directors.
Lionsgate management and its board of directors sought to thwart Icahn's plans, according to the complaint. The lawsuit 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, including Icahn.
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 .
About Hagens Berman 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 .
Contact Firmani + Associates Mark Firmani 206-443-9357 mark@firmani.com
