Lions Gate Admits Disclosure Violations In 2010 Icahn Spat

Lions Gate Entertainment Corp. (USA) (NYSE:LGF) revealed in an SEC filing that it has admitted to disclosure violations relating to certain transactions it announced on July 20, 2010, and has agreed to pay $7.5 million in penalties.

Lions Gate Entertainment Corp. (USA) (NYSE:LGF) entered these transactions during its defense against activist investor Carl Icahn’s hostile bid to take over the company in 2010.

Dilution by night

According to the SEC, the company thwarted Icahn’s bid by enabling the allotment of about 16 million of new shares to a company-friendly director, since identified as current chairman Mark Rachesky,...