NY Judge Tosses Icahn Suit Against Lions Gate

Jun 24 2011 | 9:45am ET

It’s curtains for activist investor Carl Icahn’s lawsuit against the board of Lions Gate Entertainment.

A judge in New York has thrown out the suit, which accused board members of conspiring with large shareholders to block Icahn’s hostile bid for the Vancouver-based movie studio.

According to Bloomberg, State Supreme Court Justice O. Peter Sherwood cited the November findings of a Canadian court, which rejected Icahn’s claim that a debt-for-equity swap that diluted his Lions Gate interest was improper, in dismissing the New York breach-of-contract claim.

Icahn, the chairman of Icahn Enterprises, had sued Lions Gate in both New York and Canada in July to reverse a debt-for-equity swap that had increased Lions Gate director Mark Rachesky’s stake in the studio to almost 29%. Icahn pulled the plug on his hostile bid for the studio last December, after a New York judge ruled that Rachesky could keep his increased voting power.

“In light of the detailed findings of the Supreme Court of British Columbia, Canada, the court has determined to grant defendants’ motion,” Sherwood wrote in his decision. “The complaint will be dismissed.”

Lions Gate, which produced “Precious,” “American Psycho” and the TV show “Mad Men,” said in a statement that it was pleased with Sherwood’s ruling.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


Hedge Funds Swarm Into Palm Beach

Oct 27 2016 | 2:32pm ET

As the first flakes of snow fall on New York's northern suburbs, Dan Weil of South...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...