AMC Entertainment plunges 23% after it settles lawsuit to convert APE units into common stock

Tue, 04/04/2023 - 12:03

Adam Aron sitting in a chair at a conference. — Adam Aron, Chairman of the Board and CEO, AMC Entertainment, speaks at the 2021 Milken Institute Global Conference in Beverly Hills, California, U.S., October 18, 2021.
David Swanson/Reuters

AMC Entertainment plunged 23% on Tuesday after it settled a shareholder lawsuit over its APE preferred stock.
The settlement paves the way for AMC to convert APE units into AMC common shares.
It can also move forward with a reverse-stock split and a capital raise, proposals previously rejected by shareholders.

AMC Entertainment plunged as much as 23% on Tuesday after it entered a binding settlement term sheet surrounding a shareholder lawsuit about its plan to convert its APE preferred equity units into AMC common shares.