Defendant Name: Lions Gate Entertainment Corp.

Defendant Type: Public Company
SIC Code: 7812
CUSIP: 53591920

Initial Case Details

Legal Case Name In the Matter of Lions Gate Entertainment Corp.
First Document Date 13-Mar-2014
Initial Filing Format Administrative Action
File Number 3-15791
Allegation Type Issuer Reporting and Disclosure

Violations Alleged

Exchange Act
• Rule 12b-20
• Sec 13(a)
• Rule 13a-11
Other
• Rule 14d-9 Exchange Act; Section 14(d) Exchange Act

Resolutions

First Resolution Date 13-Mar-2014
Headline Total Penalty and Disgorgement $7,500,000

Related Documents:

34-71717 13-Mar-2014 Administrative Proceeding
Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order
On March 13, 2014, the SEC instituted a settled administrative proceeding against Lions Gate Entertainment Corp. According to the SEC Lions Gate Entertainment Corp. public filings failed to disclose material information in its effort to defeat a hostile tender offer by a large shareholder.
2014-51 13-Mar-2014 Press Release--Administrative Proceeding
SEC Charges Lions Gate With Disclosure Failures While Preventing Hostile Takeover; Company Admits Wrongdoing to Settle SEC Charges
On March 13, 2014, the SEC announced that it charged motion picture company Lions Gate Entertainment Corp. ("Lions Gate") with failing to fully and accurately disclose to investors a key aspect of its effort to thwart a hostile takeover bid. According to the SEC's order instituting settled administrative proceedings, Lions Gate's management participated in a set of extraordinary corporate transactions in 2010 that put millions of newly issued company shares in the hands of a management-friendly director, a purpose of which was to defeat a hostile tender offer by a large shareholder. Lions Gate failed to reveal that the move was part of a defensive strategy to solidify incumbent management's control. Rather, the company stated in SEC filings that the transactions were part of a previously announced plan to reduce debt when, in fact, Lions Gate had made no such prior announcement. Lions Gate agreed to pay $7.5 million and admit wrongdoing to settle the SEC's charges.