Lede

AMC Entertainment Holdings Inc. has agreed to settlement terms regarding a shareholder litigation, resulting in a significant drop in the company's stock price.

Summary

• AMC's stock dropped by 22% in extended trading after agreeing to settlement terms.
• The settlement would allow AMC to convert its AMC Preferred Equity units into shares of common stock.
• Shareholders supported the 10-to-1 reverse stock split and the ability to sell more shares in mid-March, but it faced court proceedings.
• Final settlement is subject to a formal agreement and court approval.
• Payment to plaintiffs includes approximately 4.4% of AMC's stock or 6.9 million shares.
• AMC's regular trading day ended with a 2% increase, but APEs were up 22% in the extended session.