EFiled: Jun 07 2023 04:31PM EDT
Transaction ID 70149984
Case No. 2023-0215-MTZ
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
IN RE AMC ENTERTAINMENT HOLDINGS, INC. STOCKHOLDER LITIGATION
CONSOLIDATED
C.A. No. 2023-0215-MTZ
DEFENDANTS' REPLY BRIEF IN FURTHER
SUPPORT OF PROPOSED SETTLEMENT
OF COUNSEL: | RICHARDS, LAYTON & FINGER, P.A. |
Raymond J. DiCamillo (#3188) | |
John A. Neuwirth | Kevin M. Gallagher (#5337) |
Joshua S. Amsel | Matthew W. Murphy (#5938) |
Matthew S. Connors (#5598) | One Rodney Square |
Tanner S. Stanley | 920 N. King Street |
WEIL, GOTSHAL & MANGES LLP | Wilmington, Delaware 19801 |
767 Fifth Avenue | (302) 651-7700 |
New York, New York 10153 | |
(212) 310-8000 | Attorneys for AMC Entertainment |
Holdings, Inc., Adam M. Aron, Denise | |
Dated: June 7, 2023 | Clark, Howard W. Koch, Kathleen M. |
Pawlus, Keri Putnam, Anthony J. Saich, | |
Philip Lader, Gary F. Locke, Lee | |
Wittlinger, and Adam J. Sussman |
TABLE OF CONTENTS | |
PRELIMINARY STATEMENT | 1 |
ARGUMENT | 4 |
- THE OBJECTIONS SHOULD BE OVERRULED AND THE COURT SHOULD APPROVE THE PROPOSED
SETTLEMENT | 4 |
- The Court Should Disregard Improperly Submitted,
Moot, Or Irrelevant Objections | 4 | |
B. | Plaintiffs' Claims Were Likely To Fail On The Merits | 6 |
- AMC Continues To Need To Raise Significant Equity
Capital For Its Business To Survive | 11 |
D. | Notice To Stockholders Was Implemented In | |
Accordance With The Scheduling Order, And | ||
Constituted Due, Adequate, And Sufficient Notice | 15 |
- The Settlement Provides Defendants With A Typical
Release | 19 |
- The Proposed Settlement Should Be Approved As A
Non-Opt-Out Settlement | 24 |
- Objector "Alternatives" To The Proposed Settlement Do Not Call Into Question The Reasonableness Of The
Settlement | .................................................................................26 |
CONCLUSION | 27 |
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TABLE OF AUTHORITIES | |
Cases | Page(s) |
In re Activision Blizzard, Inc. S'holder Litig., | |
124 A.3d 1025 (Del. Ch. 2015), as revised (May 21, 2015) | 3, 18, 23 |
Am. Hardware Corp. v. Savage Arms Corp., | |
136 A.2d 690 (Del. 1957) | 18 |
In re Appraisal of Dell Inc., | |
2015 WL 4313206 (Del. Ch. July 13, 2015), as revised (July 30, | |
2015) | 15 |
Barkan v. Amsted Indus., Inc., | |
567 A.2d 1279 (Del. 1989) | 3 |
Blasius Indus., Inc. v. Atlas Corp., | |
564 A.2d 651 (Del. Ch. 1988) | 7, 8, 9 |
In re Celera Corp. S'holder Litig., | |
59 A.3d 418 (Del. 2012) | 25 |
CME Gp., Inc. v. Chi. Bd. Options Exch., Inc., | |
2009 WL 1547510 (Del. Ch. June 3, 2009) | 20, 21, 23 |
In re Columbia Pipeline Gp., Inc. Merger Litig., | |
C.A. No. 2018-0484-JTL (Del. Ch. June 1, 2022) (TRANSCRIPT) | 20, 21, 23 |
Coster v. UIP Cos., | |
255 A.3d 952 (Del. 2021) | 8 |
In re Cox Radio, Inc. S'holders Litig., | |
2010 WL 1806616 (Del. Ch. May 6, 2010), | |
aff'd, 9 A.3d 475 (Del. 2010) (TABLE) | 24 |
Crown EMAK P'rs, LLC v. Kurz, | |
992 A.2d 377 (Del. 2010) | 18 |
In re Dole Food Co., | |
2017 WL 624843 (Del. Ch. Feb. 15, 2017) | 16, 18 |
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Enstar Corp. v. Senouf, | ||
535 A.2d 1351 (Del. 1987) | 18 | |
Goldman v. Aegis Corp., | ||
1982 WL 525016 (Del. Ch. May 3, 1982) | 6 | |
Griffith v. Stein, | ||
283 A.3d 1124 (Del. 2022) | 22 | |
Hartford Accident & Indem. Co. v. W. S. Dickey Clay Mfg. Co., | ||
24 A.2d 315 (Del. 1942) | 10, 11 | |
In re Madison Square Garden Ent. Corp. S'holders Litig., | ||
2023 WL 3696664 (Del. Ch. May 26, 2023) | 18 | |
Mercier v. Inter-Tel (Del.), Inc., | ||
929 A.2d 786 (Del. Ch. 2007) | 7 | |
MM Cos., v. Liquid Audio, Inc., | ||
813 A.2d 1118 (De1. 2003) | 7, 8 | |
Nottingham P'rs v. Dana, | ||
564 A.2d 1089 (Del. 1989) | 24 | |
Orban v. Field, | ||
1993 WL 547187 (Del. Ch. Dec. 30, 1993) | 10, 11 | |
In re Phila. Stock Exch., Inc., | ||
945 A.2d 1123 (Del. 2008) | 19, 20, 21, 22, 23, 26 | |
Polk v. Good, | ||
507 A.2d 531 (Del. 1986) | 26 | |
In re Prodigy Commc'ns Corp. S'holders Litig., | ||
2002 WL 1767543 (Del. Ch. July 26, 2002) | 23 | |
In re Protection One, Inc. S'holder Litig., | ||
C.A. No. 5468-VCS (Del. Ch. Oct. 6, 2010) (TRANSCRIPT) | 18 | |
In re Snap Inc. Section 242 Litig., | ||
C.A. No. 2022-1032-JTL (Del. Ch. Mar. 29, 2023) | ||
(TRANSCRIPT), appeal filed, No. 120, 2023 (Del. Apr. 21, 2023) | 10, 11 |
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Strategic Inv. Opportunities LLC v. Lee Enters., Inc., | |
2022 WL 453607 (Del. Ch. Feb. 14, 2022) | 9 |
In re Triarc Cos., | |
791 A.2d 872 (Del. Ch. 2001) | 19, 23, 24 |
UniSuper, Ltd. v. News Corp., | |
898 A.2d 344 (Del. Ch. 2006) | 21, 22 |
Unocal Corp. v. Mesa Petrol. Co., | |
493 A.2d 946 (Del. 1985) | 8 |
Statutes & Rules | |
8 Del C. § 242(b)(2) | 6, 10, 11 |
Ct. Ch. R. 23(b)(1) | 24, 25 |
Ct. Ch. R. 23(b)(2) | 24, 25 |
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AMC Entertainment Holdings Inc. published this content on 08 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 June 2023 22:33:33 UTC.