What happened to AMC Entertainment shares?

AMC Entertainment shares plummeted more than 20% Tuesday, slipping to a new 52-week low of $2.46 per share. On Friday, the movie theater chain’s preferred equity units, dubbed APE shares, are set to be transformed into common stock just one year after they began trading on the New York Stock Exchange.

Why did AMC file a class action lawsuit?

He also said it violates the certificate of designation that governs AMC's preferred stock. The lawsuit adds to months of legal turmoil for the company. Objections to shareholder class action settlements are rare, but AMC received thousands from investors who questioned claims about the company's dire finances.

Why is AMC converting its stock?

Wold sees the stock conversion as a way for AMC to weather the global exhibition industry’s prolonged post-pandemic recovery as well as any future impacts from the ongoing writer and actor strikes in Hollywood.

What are AMC Entertainment preferred equity units?

Last August, Aron made the decision to create a new class of shares called AMC Entertainment Preferred Equity Units (NYSE: APE ). Initially, 517 million units of APE were issued, or one unit for each outstanding share of AMC stock. In addition, each unit represented “an interest in 1/100th of a share” of preferred stock.