The ruling sent the shares of the company's preferred stock soaring 27%.
The company's common stock fell 27%.
Under the approved class action settlement, AMC will provide stock worth an estimated $129 million to holders of its common stock to settle potential legal claims related to a stock conversion plan.
Without the proposed settlement, common stockholders and preferred shareholders would end up owning 34.28% and 65.72% of AMC, respectively.
Under the proposed settlement, common stockholders and preferred shareholders would own 37.15% and 62.85%, respectively.
Persons:
Brendan McDermid, Chancellor Morgan Zurn, Zurn, Tom Hals, Deepa Babington
Organizations:
AMC Theatre, REUTERS, AMC Entertainment Holdings, AMC, Delaware, AMC Entertainment Holdings Inc, Chancery, Thomson
Locations:
New York City, U.S, WILMINGTON , Delaware, Delaware, Wilmington , Delaware