EFiled: Jun 08 2023 10:25AM EDT
Transaction ID 70161266
Case No. 2023-0215-MTZ
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
IN RE AMC ENTERTAINMENT | ) | |
) | CONSOLIDATED | |
HOLDINGS, INC. STOCKHOLDER | ||
) | C.A. No. 2023-0215-MTZ | |
LITIGATION | ||
) | ||
PLAINTIFFS' REPLY IN FURTHER SUPPORT
OF SETTLEMENT, AWARD OF ATTORNEYS'
FEES AND EXPENSES, AND INCENTIVE AWARDS
BERNSTEIN LITOWITZ BERGER | BERNSTEIN LITOWITZ BERGER |
& GROSSMANN LLP | & GROSSMANN LLP |
Mark Lebovitch | Gregory V. Varallo (#2242) |
Edward Timlin | Daniel E. Meyer (#6876) |
1251 Avenue of the Americas | 500 Delaware Avenue, Suite 901 |
New York, NY 10020 | Wilmington, DE 19801 |
(212) 554-1400 | (302) 364-3601 |
FIELDS KUPKA & | GRANT & EISENHOFER P.A. |
SHUKUROV LLP | Michael J. Barry (#4368) |
William J. Fields | Kelly L. Tucker (#6382) |
Christopher J. Kupka | Jason M. Avellino (#5821) |
Samir Shukurov | 123 Justison Street, 7th Floor |
1441 Broadway, 6th Floor #6161 | Wilmington, DE 19801 |
New York, NY 10018 | (302) 622-7000 |
(212) 231-1500 | SAXENA WHITE P.A. |
SAXENA WHITE P.A. | |
Thomas Curry (#5877) | |
David Wales | 824 N. Market Street, Suite 1003 |
10 Bank Street, 8th Floor | Wilmington, DE 19801 |
White Plains, NY 10606 | (302) 485-0483 |
(914) 437-8551 | Attorneys for Lead Plaintiffs |
- and - | |
Adam Warden | |
7777 Glades Rd., Suite 300 | |
Boca Raton, FL 33434 | |
(561) 394-3399 |
Dated: June 8, 2023
TABLE OF CONTENTS | |
Page(s) | |
Introduction | 1 |
Methodology | 7 |
Argument | 10 |
I. No Objector Shows that the Settlement Is Unreasonable or Inadequate | 10 |
- The Settlement "Give" and "Get" Fall Within the Range of
Reasonableness | 11 | |
1. | The "Give" | 11 |
- Objectors ignore substantial risks of continued
prosecution of the Blasius claim | 11 |
- Objectors ignore substantial risks associated with
prosecution of the §242(b) claim | 16 | ||
c. | Objectors misconstrue and overvalue the "give" | 22 | |
2. | "The Get" | 24 | |
a. | Objectors undervalue the "get" of the Settlement | 24 |
- Proposed amendments to 8 Del. C. § 242(d) further
enhance the value of the "get" | 27 |
- Objectors' "Suggestions for a revised Settlement Proposal" are outside the Court's purview and underscore
the utility of representative litigation | 29 |
- No Objector Has Identified Any Additional Claim(s) That Could
Have Created More Value for the Class | 32 | |
1. | Common Law Fraud | 32 |
2. | Reverse Stock Split Claims | 33 |
- i - |
3. | Challenges to the March 14 Vote | 33 |
4. | Theories about Manipulation in the Stock Market | 34 |
- The "Views of The Parties Involved, Pro and Con" Do Not Support
Denial of the Settlement | 36 |
- The Scope of the Release Is Appropriate Given the Value of the
Settlement | 38 |
- No Objector Advances a Valid Argument against Class Certification on a
Non-Opt-Out, Rule 23(b)(1) or (b)(2) Basis | 42 | |
A. | Franchi and Allegheny Are Adequate | 42 |
B. | Izzo Is Cannot Lead the Class | 45 |
- Moving to Lift the Status Quo Order Does Not Impugn Plaintiffs'
Counsel's Adequacy | 46 | |
D. | The Class Is Properly Certified with No Opt-Out Right | 48 |
E. | Notice Here Comports with Due Process | 52 |
- Objections to the Fee, Expense, and Incentive Award Are Conclusory and
Fail to Rebut the Strong Support in the Award's favor | 54 | |
A. | The Fee Request Is Reasonable | 54 |
- None of the Scattershot Objections to the Proposed Award Have
Merit | 55 | |
C. | Lead Plaintiffs Deserve Incentive Awards | 60 |
Conclusion | ............................................................................................................... | 61 |
- ii -
TABLE OF AUTHORITIES | |
Page(s) | |
CASES | |
In re Activision Blizzard, Inc. S'holder Litig., | |
124 A.3d 1025 (Del. Ch. 2015) | passim |
Allegheny Cty. Emps.' Ret. Sys. v. Energy Transfer, L.P., | |
No. 20-200 (E.D. Pa) | 45, 46 |
Am. Hardware Corp. v. Savage Arms Corp., | |
136 A.2d 690 (Del. 1957) | 53 |
Ams. Mining Corp. v. Theriault, | |
51 A.3d 1213 (Del. 2012) | 54, 59 |
In re ArthroCare S'holder Litig., | |
C.A. No. 9313-VCL (Del. Ch. Nov. 6, 2014) | 58 |
Baker v. Sadiq, | |
2016 WL 4375250 (Del. Ch. Aug. 16, 2016) | 58 |
Basic, Inc. v. Levinson, | |
485 U.S. 224 (1988) | 33 |
C&J Energy Servs. v. City of Miami Gen. Emps.' & Sanitation Emps.' | |
Ret. Tr., | |
107 A.3d 1049 (Del. 2014) | 6, 29, 32 |
In re Celera Corp. S'holder Litig., | |
59 A.3d 418 (Del. 2012) | 49, 50 |
In re China Integrated Energy, Inc. S'holders Litig., | |
C.A. No. 6625-VCL (Del. Ch. Dec. 2, 2015) | 58 |
Christiana Care Health Servs. v. Davis, | |
127 A.3d 391 (Del. 2015) | 40 |
City of Monroe Emps' Ret. Sys. v. Murdoch, | |
C.A. No. 2017-0833-AGB (Del. Ch. Feb. 9, 2018) | 58 |
- iii -
DeMarco v. Christiana Care Health Servs., | |
263 A.3d 423 (Del. Ch. 2021) | 32 |
Forsythe v. ESC Fund Mgmt. Co. (U.S.), | |
2013 WL 458373 (Del. Ch. Feb. 6, 2013) | 29 |
Garfield v. Boxed, Inc., | |
2022 WL 17959766 (Del. Ch. Dec. 27, 2022) | 17 |
Griffith v. Stein, | |
283 A.3d 1124 (Del. 2022) | 40 |
In re Josephson Int'l, Inc., | |
1988 WL 112909 (Del. Ch. Oct. 19, 1988) | 58 |
Kahn v. Sullivan, | |
594 A.2d 48 (Del. 1991) | 11 |
La. Mun. Police Emps.' Ret. Sys. v. Crawford, | |
C.A. No. 2635-CC (Del. Ch.) | 47 |
La. Mun. Police Emps.' Ret. Sys. v. Fertitta, | |
C.A. No. 4339-VCL (Del. Ch.) | 47 |
Macomb Cty. Empl's. Ret. Sys. v. McBride, | |
C.A. No. 2019-0658-LLW (Del. Ch. Oct. 11, 2021) | 4, 24, 56, 58 |
In re Multiplan Corp. S'holders Litig., | |
No. 2021-0300-LWW (Del. Ch. Mar. 1, 2023) | passim |
New Enterprise Assoc. 14, L.P. v. Rich, | |
2023 WL 3195927 (Del. Ch. May 2, 2023) | 40 |
Nottingham Partners v. Dana, | |
564 A.2d 1089 (Del. 1989) | 49 |
Orban v. Field, | |
1993 WL 547187 (Del. Ch. Dec. 30, 1993) | 18, 19, 20 |
In re Pivotal Software, Inc. S'holders Litig., | |
C.A. No. 2020-0440-KSJM (Del. Ch. Oct. 4, 2022) | 24, 27, 38 |
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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.