| 2016-11-28 16:46:34|
LGF, STRZA 16:46 11/28 11/28/16
Lions Gate enters stipulation of settlement over Starz deal litigation
In a regulatory filing, Lions Gate (LGF) said that, on November 23, it and other defendants in the Levy v. Malone et al. litigation entered into a stipulation of settlement with the plaintiff providing for the settlement of the action. The stipulation contemplates, among other things, that Lions Gate will make certain supplemental disclosures relating to the proposed merger of Orion Arm Acquisition with and into Starz (STRZA). Although Lions Gate and the other defendants deny the allegations made in the Action and believe that no supplemental disclosure is required under applicable laws, in order to avoid the burden and expense of further litigation, Lions Gate agreed to make such supplemental disclosures pursuant to the terms of the Stipulation. The Stipulation is subject to customary conditions, including court approval following notice to Lions Gate's stockholders. A hearing will be scheduled at which the New York state court will consider the fairness, reasonableness and adequacy of the settlement. If the settlement is finally approved by the court, it will resolve and release all claims by stockholders of Lions Gate challenging any aspect of the proposed Merger, the Merger Agreement and any disclosure made in connection therewith, pursuant to terms that will be disclosed to stockholders prior to final approval of the settlement. There can be no assurance that the court will approve the settlement contemplated by the Stipulation. In such event, the proposed settlement as contemplated by the Stipulation may be terminated and the defendants would continue to vigorously defend against the allegations in the Action.