03/14/2014
Squitieri & Fearon, LLP is investigating claims for shareholders of Lions Gate Entertainment Corp. (NYSE:LGF) , which has admitted that it violated securities regulations in 2010 when it defeated a hostile takeover attempt by Carl Icahn. Lionsgate has agreed to pay a $7.5 million fine to the SEC. The firm is pursuing allegations for shareholders that certain directors of Lionsgate, including Mark Rachesky, violated their duties and violated the law by failing to inform the company's shareholders that a tender offer was being made of Lionsgate shares while the company was fighting a proxy battle. As part of an improper effort to defeat Carl Icahn's takeover offer and profit at the expense of the company and its shareholders, Lions Gate e swapped $100 million in notes that it owed to Kornitzer Capital management and obtained notes that could be converted into stock. One of Lionsgate's directors, Mark Rachesky, then immediately bought the notes for $6.20 a share and converted them into common stock, diluting Mr. Icahn's stake in Lions Gate (and diluting the shares held by stockholders), making it impossible for Icahn to buy the outstanding shares of Lionsgate, and depriving the company's shareholders of a premium for their shares. The transaction created significant profit for Mr. Rachesky at the expense of Lionsgate shareholders.
The firm is pursuing claims for shareholders of Lionsgate who held their stock any time between 2010 and 2014.
