SAN FRANCISCO, Aug. 19, 2014 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, an investor-rights law firm, reminds investors of the Sept. 9, 2014, lead plaintiff deadline in the securities fraud class action against Lions Gate Entertainment Corp. (NYSE:LGF) ("Lions Gate" or "the Company"). Investors who purchased Lions Gate 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, and docketed under 14-cv-5477, alleges that Lions Gate carried out multiple transactions intended to stop a hostile takeover from shareholder and founder of Icahn Enterprises, Carl Icahn. These transactions caused Lions Gate 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.
Lions Gate 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 Lions Gate had not announced any such debt-reduction plan, according to the lawsuit. Lions Gate settled the investigation, paying $7.5 million in fines and acknowledging that it had violated federal securities laws.
On the news of the settlement and the acknowledgement that the Company violated securities laws, Lions Gate shares fell 9 percent, or about $3 per share, between March 12, 2014 and March 17, 2014.
"We are investigating the extent to which Lions Gate concealed the truth about these transactions and the SEC investigation from their shareholders," said Mr. Kathrein. "Lions Gate, in essence, lied to their shareholders, and we will work on behalf of these shareholders to reveal the full impact of Lions Gate's conduct."
Persons with non-public information regarding Lions Gate 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.
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.
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