Tags: Lions | Gate | Files | Complaint | Icahn | MGM

Lions Gate Files New Complaint Against Icahn Over MGM

Monday, 06 Dec 2010 11:24 AM

Lions Gate Entertainment Corp. filed an amended complaint against billionaire Carl Icahn, reiterating that he was “secretly plotting” to profit from merging the studio with Metro-Goldwyn-Mayer Inc. while telling investors the deal would be a “debacle.”

Icahn should correct his misstatements, compensate Lions Gate investors and pay damages for interfering in the company’s plans, the Vancouver-based studio said in a Dec. 3 filing in U.S. District Court in New York.

Separately, Lions Gate asked a judge to force Icahn to disclose the extent and value of his holdings of MGM debt and the history of his trading in the debt. The studio said he should do this before his tender offer for Lions Gate closed on Dec. 10, “so that Lions Gate shareholders can make an informed decision” on whether to sell him their shares or vote for his nominees to Lions Gate’s board.

Icahn and his investing group “believe that Lions Gate’s lawsuit and its claims continue to be completely without merit,” the New York investor said today in a statement.

Icahn disclosed in a Nov. 2 court filing that he owns $596 million in MGM debt, bought from November 2008 to October 2010, he said in the statement.

Lions Gate’s films include “Crash” and “Precious.” Icahn has conducted a battle to wrest control of the Canadian studio from its management.

containing reports on how the studio defended itself by issuing discounted stock to a fund controlled by board member Mark Rachesky.

The case is Lions Gate Entertainment Corp. v. Icahn, 10-cv- 8169, U.S. District Court, Southern District of New York (Manhattan).

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