"Our business is highly seasonal, with higher attendance and revenues generally occurring during the summer months and holiday seasons," AMC said in regulatory filings around the time it was acquiring Carmike Cinemas and U.K.-based Odeon & UCI Cinemas more than a year ago.
Beyond the issue of seasonality differences between the U.S. and other countries, the lawsuit contends that AMC misled investors in other ways, such as failing to disclose prior to its acquisition of Carmike that the rival exhibitor was losing market share.
AMC was not available to comment on the lawsuit. Its shares closed Friday at $14.45, down more than 50 percent in the past year.
Contributing Author: Paul Bond