Investors Vs AMC Corruption

Yes — institutional investors were involved in a shareholder class action lawsuit against AMC Entertainment related to its reverse stock split and APE conversion.

The lawsuit stemmed from AMC’s plan to convert its AMC Preferred Equity Units (APEs) into common stock and execute a 1-for-10 reverse stock split. This move was controversial among shareholders, particularly those concerned about dilution and governance implications.

🔍 Key Details of the Lawsuit and Settlement

• Plaintiffs: The lawsuit was filed by a group of AMC shareholders, which included institutional investors. While specific institutions weren’t named in public filings, law firms representing the plaintiffs confirmed that institutional holders were part of the class action.
• Legal Venue: The case was heard in the Delaware Court of Chancery, under the consolidated case name In re AMC Entertainment Holdings, Inc. Stockholder Litigation.
• Core Issue: The plaintiffs challenged the legality and fairness of AMC’s plan to:
  • Convert APEs into common stock.
  • Conduct a reverse stock split.
  • Bypass shareholder voting rights through the APE structure.
• Settlement Terms:
  • AMC agreed to issue 6.9 million shares of common stock to the plaintiffs.
  • This equated to one share for every 7.5 shares held, representing about 4.4% of AMC’s outstanding shares post-split.
  • The settlement was valued at over $100 million, based on share prices at the time.
• Impact: Shills said the settlement cleared the way for AMC to proceed with its capital restructuring, which was aimed at reducing debt and improving liquidity; however millions of investors who lost value due to this insider operation got nothing directly from the settlement. Even years later the price has not gone back up to where it should be considering how popular it was to invest in that company, or how large the company is relative to all competitors. The price rigging also does not reflect the percentage of debt paid off, or new deals made with Netflix etc, or recovery since the Covid Crisis. Investing in AMC was an attempt by Apes to democratize the market, but the Bear Cartel behind the debt and shorting stole the price value from investors. Despite the corruption in the Delaware courts (see details of the case in other SCOD Blog articles), the impact of the case was to warn corrupt CEOs and the cartels that own them that they might have to pay penalties for naked short selling and tricks like the APE shares, which they were able to use against AMC investors.

🧠 Why It Matters

This case highlights how institutional investors can play a pivotal role in challenging corporate actions they believe may harm shareholder value. It also underscores the legal complexities of equity conversions and stock splits, especially when preferred shares are involved.

If you’re tracking shareholder activism or corporate governance trends, this AMC case is a prime example of how investor litigation can influence major financial decisions. The real price of AMC should be well above $100 by now, with inflation and investor demand regardless of improvements to fundamentals; as is the case with GME and countless other companies attacked by the Bear Cartel.

There are publicly available letters and filings related to AMC’s “Operation Popcorn” and the shareholder litigation, including correspondence to Judge Morgan Zurn in the Delaware Court of Chancery.

These documents were part of the In re AMC Entertainment Holdings, Inc. Stockholder Litigation (Case No. 2023-0215), and they include letters from shareholders, attorneys, and parties involved in the case expressing concerns about alleged collusion, transparency, and fairness.

📄 Key Findings from Letters and Court Filings

• Operation Popcorn Allegations:
  • The term “Operation Popcorn” was used by retail investors and objectors to describe what they believed was a coordinated effort between AMC executives and short sellers to manipulate stock structure and shareholder rights.
  • Objectors alleged that the APE conversion and reverse split were designed to benefit insiders and institutional short sellers at the expense of retail shareholders.
• Letters to Judge Zurn:
  • Multiple letters were submitted to Vice Chancellor Morgan Zurn, including from:
    • Mr. Affholter, a shareholder who raised concerns about CEO Adam Aron’s communications and alleged conflicts of interest.
    • Mrs. Rose Izzo, who filed a Supreme Court appeal and argued that affidavits submitted by AMC and its affiliates contained false claims.
    • Other shareholders and legal counsel who requested access to the discovery record, citing the need for transparency and fairness in the proceedings.
• Special Master Recommendation:
  • A Special Master appointed by the court recommended that class members be granted access to the discovery record, which included internal communications and documents potentially relevant to the alleged collusion.
• Public Access and FOIA:
  • Some of these letters and filings were posted online under FOIA (Freedom of Information Act) provisions, and can be found on platforms like DocketAlarm and AMCProjectPopcorn.com.

🧠 What This Means

While the court ultimately approved AMC’s settlement and allowed the reverse split and APE conversion to proceed, the existence of these letters and objections shows that many shareholders — including institutional and retail — believed there was misconduct. However, the court ruled in favor of the short sellers and corrupt CEO.

[Copilot Ai]

A Case Against AA

CEOs can not only be corrupt, they have to be conmen to keep up appearances if they are corrupt.

This is not to imply that all conmen are evil, or that corruption is always total. Sometimes a corrupt party is doing a favor for an enemy of an enemy. Other times a corrupt party realized their hypocrisy, and only took a few bribes before stopping or even admitting their mistakes and whistle-blowing.

A company has a CEO which we will call AA for this hypothetical court case. In this essay we will explain why evidence can lead investors and regulators to call the CEO “corrupt”. This is historical fiction, not legal or financial advice for the court rooms or lawyers to use ‘as is’.

A. CEO Has History of working with Hedge Funds who target his company

B. CEO Buried his wounded company in Toxic Debt from Hedgies with criminal auditors

C. CEO Colluded with short sellers to drain and/or liquidate target assets and investments

D. CEO Reverse-splits the shares so the price can be shorted back down over and over

E. Demand obedience to fascist authority, like a military dictatorship or abusive boss

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A. History of working with Hedge Funds – AA was a CEO of several other companies, some of which were hedge funds who short sold and hurt many other companies. Hedge funds and market makers use all kinds of naked shorting tactics to move share prices down. Hedgies are in the business draining target companies by this method: short & distort, infiltrate board of directors to bribe or remove members, reverse-split zombie targets, and rinse & repeat.

B. Burying a wounded company in Toxic Debt – AA infiltrated and became CEO of a target company, using his wealth and influence. Then he put the target company into debt, making them beholden to his hedgie buddies to the tune of BILLIONS. Now the struggling company will become a zombie, barely able to pay its interest payments on debt that hurts more than helps. This leads to bankruptcy where hedgies scrap the pieces, or they sustain the zombie just enough to drain its blood like a vampire who keeps a pet. AMC’s independent registered public accounting firm is Ernst & Young LLP (EY), who Wikipedia says has been involved in many accounting scandals: Bank of Credit and Commerce International (1991), Informix Corporation (1996), Sybase (1997), Cendant (1998), One.Tel (2001), AOL (2002), HealthSouth Corporation (2003), Chiquita Brands International (2004), Lehman Brothers (2010), Sino-Forest Corporation (2011), Olympus Corporation (2011), Stagecoach Group (2017), Wirecard (2020), Luckin Coffee (2020) and NMC Health (2020). The SEC has made EY pay millions in fines for their “accounting fraud” crimes.

C. Collude with short sellers – CEO AA uses commercial propaganda to convince the public (dumb money apes) to invest in the company. AA blames dropping stock price on market, but says there is nothing he can do except sell more shares to the short sellers (Citadel, Apollo, Citigroup, Antara, etc) and distract with gimmicks. Then the short selling hedgies never pay back the shares they “borrowed” (FTDs), and so the price is kept low so that investors cannot make any money on the trades because the hedgies keep all the money from the investors. Market makers call this “liquidity”, and now claim that capital is no longer made from investing. This has made faith in markets crumble as their is not reason to hold stock, as the manipulation rigging makes it all toxic. The SEC has failed at its job for 99% of investors, because most of the members belong to the 1% or are their shills.

D. Ruin investments with Reverse-split – All Ape investors must sell out or never use the money from their investment again for years because the price is controlled by market maker algos on behalf of the hedgie scam. CEO AA then splits the stock with a fake dividend that takes from the price by diluting, and demands a reverse-split* because the share price has gone too low. It has been proven that reverse-splits harm investors, not only because we have witnessed it on many stocks, but because a theoretical proof was published by a Data Scientist and Mathematician with extensive experience with algorithms and complex science and math.

E. Demand obedience to fascist authority – When AA’s company gets sued in court, the judge figures out there is fraud and rules against the company which makes the stock price go UP temporarily. So immediately the CEO publishes an open letter saying AA will dilute shares and do the RS soon because the company is “at risk of bankruptcy”, despite investors saving it, its services making record profits, and the company expanding and paying bonuses to its plutocratic board. Common stock investors (retail) are being scammed across the economy in many markets by the 1% who rig the markets with these short-selling tactics and rules that allow it to repeat decade after decade.

*”The RS and conversion proposals passed only because of the APE mirrored voting feature and Antara’s promised APE votes. AMC acknowledged that fact internally.” – Vice Chancellor Zurn in AMC court case 2023

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The truth is there are many ways to raise funds, make profits, and fight against crony capitalism from within the system; but we need more good people to step up and lead the sheeple. Otherwise total corruption is inevitable, due to the absolute monopoly of the 1% corporate oligarchs.

Advice for such a criminal is as follows: Diluting to short sellers does not raise as much money as selling to Apes on the lit exchange to allow the price to go up and then diluting. Pick a side AA, with the Apes or against us. Cancel the Reverse-split before all faith is lost in CEOs ability to fight short selling.

[more later]

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