The Acquisition of Carmike Cinemas, Inc. May Not Be in the Best Interests of CKEC Shareholders

Mar 07, 2016, 13:48 ET from WeissLaw LLP

NEW YORK, March 7, 2016 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of Carmike Cinemas, Inc. ("CKEC" or the "Company") in connection with the proposed acquisition of the Company by AMC Entertainment Holdings, Inc. ("AMC").  On March 3, 2016, CKEC and AMC jointly announced the proposed acquisition of CKEC, pursuant to which CKEC shareholders will receive $30.00 in cash for each CKEC share they own.

WeissLaw is investigating whether CKEC's Board acted to maximize shareholder value prior to entering into the agreement.  Notably, the Company has enjoyed impressive financial results.  On February 29, 2016, CKEC issued a press release announcing "All Time Records in Revenue, Operating Income, Theatre Level Cash Flow and Adjusted EBITDA."  The Company reported total operating revenue of $220.7 million in the fourth quarter of 2015 as compared with $185.4 million in same period of the previous year, representing an increase of approximately 19% year-over-year.  Additionally, CKEC's President and CEO, David Passman, stated that the Company's "revenue growth per screen of over 15% in the 2015 fourth quarter and 9% for the full year, outpaced the industry by almost 500 and 200 basis points, respectively."  Finally, at least one analyst set a target price of $36.00 per share.

Given these facts, WeissLaw is investigating whether CKEC's Board acted in the best interests of CKEC's public shareholders by actively shopping the Company to maximize shareholder value prior to entering into the agreement with AMC.  If you own CKEC shares and would like more information about your rights or our investigation, or if you have information to share with us, please contact Joshua Rubin by telephone at (888) 593-4771 or by email at stockinfo@weisslawllp.com.  

WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties.  We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases.  If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at stockinfo@weisslawllp.com or fill out the form on our website, http://www.weisslawllp.com/contact/report_fraud/.

 

SOURCE WeissLaw LLP



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