Chance The Lawyer ⚡︎Feb 20, 2023

Allegheny County Employees' Retirement System, on behalf of itself and all other similarly-situated Class A stockholders of AMC Entertainment Holdings, Inc. v. AMC Entertainment Holdings, Inc.

finally filed after two unsuccessful attempts to get the complaint through the Register in Chancery LOL

STONKS amirite

C.A. No. 2022-0215

Edited to say that it was assigned to Vice Chancellor Zurn, even though I thought it might be assigned to VCL.

💰

#Law #CourtOfChancery #AMC #LawFedi

Show threadChance The Lawyer ⚡︎Feb 21, 2023

https://chancery.ink/AMC

Here is the complaint! 💸

#LawFedi #CourtOfChancery #Law #AMC #APE #Stonks

Show threadChance The Lawyer ⚡︎Feb 21, 2023

There was another complaint filed just after this one finally got through at the very end of the day, 2023-0216, Usbaldo Munoz, et al. v. Adam M. Aron, et al., fairly meaningless name, unless you know what you're looking for, eh? So, I did some digging, and it's another AMC Entertainment Holdings, Inc. case, filed by Bernstein Litowitz, but this one is under seal so had to rustle around in the summons letter to find my final piece of evidence.

#AMC #APE #LawFedi

Show threadAnn LiptonFeb 21, 2023
@chancerydaily okay this plan has been out for a while - why two competing complaints on the same day? is there a deadline coming up?
Show threadChance The Lawyer ⚡︎Feb 21, 2023
@annmlipton I don't know. What's funny is that the first tried to file Friday afternoon, rejected. Tried again to file midday, rejected again. Finally got it through at the very end of the day and then as soon as it was accepted, the second came through, so it was almost like they were waiting on the first....
Show threadChance The Lawyer ⚡︎Feb 21, 2023
@annmlipton TRO brief says there's a vote on March 14th.
Show threadChance The Lawyer ⚡︎Feb 21, 2023
@annmlipton No idea why it's all happening simultaneously now, but this is the timeline the first complaint is requesting.
Show threadSteve Zorowitz

@chancerydaily @annmlipton Maybe the DEF 14A on 2/14 spurred them into action.

If they win, AMC will file for bankruptcy within 2 years. Maybe no matter who wins.

Full disclosure: I was a classmate of Adam Aron in business school.

Feb 21, 2023 at 2:04amMastodon for iOS
Show threadSteve ZorowitzFeb 21, 2023
@chancerydaily @annmlipton Well, the initial Wall St. reaction to this suit is that it has a good chance of succeeding--the arb has widened out considerably so far.
Show threadChance The Lawyer ⚡︎Feb 21, 2023
@Steve_Z @annmlipton Yes, well, Wall St. has proven it's not very good at knowing much about anything Delaware Court of Chancery.
Show threadAttractive NuisanceFeb 22, 2023

@chancerydaily @Steve_Z @annmlipton

The dynamics and game theory of this are rather complicated. Even if an arb personally thinks the lawsuit will be chucked out, if they believe others will fear the suit and unwind their position then it may be rational for them to get in and unwind first, thus widening the spread. It is a combustible situation - the borrow fees on IBKR are 731% as of today!