Shareholders Foundation, Inc.

Lions Gate Entertainment Corp. (USA) (NYSE:LGF) Investor Alert: Lawsuit Alleges False and Misleading Statements

A lawsuit was filed on behalf of investors in Lions Gate Entertainment Corp. (USA) (NYSE:LGF) shares over alleged securities laws violations. Deadline: September 9 2014. NYSE:LGF investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com

 
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San Diego, CA -- (SBWIRE) -- 07/14/2014 -- An investor, who purchased shares of Lions Gate Entertainment Corp. (USA) (NYSE:LGF), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Lions Gate Entertainment Corp. in connection with certain allegedly false and misleading statements made between February 11, 2013 and March 13, 2014.

Investors who purchased a significant amount of shares Lions Gate Entertainment Corp. (USA) (NYSE:LGF) have certain options and for certain investors are short and strict deadlines running. Deadline: September 9, 2014. NYSE:LGF investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff alleges on behalf of purchasers of Lions Gate Entertainment Corp. (USA) (NYSE:LGF) common shares between February 11, 2013 and March 13, 2014, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that by early 2013, and unbeknownst to investors, Lions Gate Entertainment Corp. was under investigation by the U.S. Securities and Exchange Commission (“SEC”) for making allegedly false and misleading statements and omissions concerning a series of transactions designed to prevent a takeover of the Company by Carl Icahn and his affiliates and that between February 11, 2013 and March 13, 2014 Lions Gate Entertainment Corp. and the other defendants allegedly misrepresented and/or failed to disclose the existence of the SEC investigation, the prospect of legal proceedings associated with the misconduct under investigation, and the Company’s exposure to loss in connection therewith.

Beginning in or about March 2010, Carl Icahn and his affiliates commenced a series of tender offers intended to facilitate his takeover of Lions Gate Entertainment Corp. by increasing his ownership interest in Lions Gate Entertainment Corp. and allowing him to designate his chosen representatives to the Company’s board of directors.

The plaintiff claims that threatened by the possibility of losing control of Lions Gate Entertainment Corp. or being replaced, Lions Gate Entertainment Corp.’s management and Board sought to block Carl Icahn and his affiliates’ plans and on July 20, 2010, the Board – with management’s assistance – approved and facilitated the Transactions, which resulted in placing over 16 million shares of common stock in the hands of director Mark Rachesky and/or entities he controlled (“Rachesky”) while diluting the interests of other Lionsgate shareholders, including Icahn, and that thereafter, Lions Gate Entertainment Corp publicly represented 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” when in fact, the SEC found, Lions Gate Entertainment Corp had not announced any such debt-reduction plan.

On May 30, 2013, Lions Gate Entertainment Corp. reported its fiscal 2013 financial results. Lions Gate Entertainment Corp. reported that Total Revenue rose from over $1.58 billion for the 12 months period that ended on March 31, 2012 to over $2.7 billion for the 12 months period that ended on March 31, 2013.

Shares of Lions Gate Entertainment Corp. (USA) (NYSE:LGF) rose from $8.41 per share in early 2012 to as high as $37.46 per share in October 2013.

On March 13, 2014, Lions Gate Entertainment Corp. disclosed that it has entered into an administrative order with the United States Securities and Exchange Commission. Lions Gate Entertainment Corp. said that under the settlement, Lions Gate Entertainment Corp. has admitted to certain disclosure violations and has agreed to pay $7.5 million in penalties. Shares of Lions Gate Entertainment Corp. declined to $25.20 per share on March 28, 2014.

Then on May 29, 2014, Lions Gate Entertainment Corp. reported its fiscal 2014 full year financial results. Lions Gate Entertainment Corp. reported that its Total Revenue declined from over $2.7 billion for the 12 months period that ended on March 31, 2013 to over $2.63 billion for the 12 months period that ended on March 31, 2014 and that its respective Net Income decreased from $232.13 million to $152.04 million.

Shares of Lions Gate Entertainment Corp. closed on May 30, 2014 at $26.13 per share.

On July 11, 2014, NYSE:LGF shares closed at $28.58 per share.

Those who purchased shares of Lions Gate Entertainment Corp. (USA) (NYSE:LGF) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com