EFiled: Jun 07 2023 04:31PM EDT

Transaction ID 70149984

Case No. 2023-0215-MTZ

IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

IN RE AMC ENTERTAINMENT HOLDINGS, INC. STOCKHOLDER LITIGATION

CONSOLIDATED

C.A. No. 2023-0215-MTZ

DEFENDANTS' REPLY BRIEF IN FURTHER

SUPPORT OF PROPOSED SETTLEMENT

OF COUNSEL:

RICHARDS, LAYTON & FINGER, P.A.

Raymond J. DiCamillo (#3188)

John A. Neuwirth

Kevin M. Gallagher (#5337)

Joshua S. Amsel

Matthew W. Murphy (#5938)

Matthew S. Connors (#5598)

One Rodney Square

Tanner S. Stanley

920 N. King Street

WEIL, GOTSHAL & MANGES LLP

Wilmington, Delaware 19801

767 Fifth Avenue

(302) 651-7700

New York, New York 10153

(212) 310-8000

Attorneys for AMC Entertainment

Holdings, Inc., Adam M. Aron, Denise

Dated: June 7, 2023

Clark, Howard W. Koch, Kathleen M.

Pawlus, Keri Putnam, Anthony J. Saich,

Philip Lader, Gary F. Locke, Lee

Wittlinger, and Adam J. Sussman

TABLE OF CONTENTS

PRELIMINARY STATEMENT

1

ARGUMENT

4

  1. THE OBJECTIONS SHOULD BE OVERRULED AND THE COURT SHOULD APPROVE THE PROPOSED

SETTLEMENT

4

  1. The Court Should Disregard Improperly Submitted,

Moot, Or Irrelevant Objections

4

B.

Plaintiffs' Claims Were Likely To Fail On The Merits

6

  1. AMC Continues To Need To Raise Significant Equity

Capital For Its Business To Survive

11

D.

Notice To Stockholders Was Implemented In

Accordance With The Scheduling Order, And

Constituted Due, Adequate, And Sufficient Notice

15

  1. The Settlement Provides Defendants With A Typical

Release

19

  1. The Proposed Settlement Should Be Approved As A

Non-Opt-Out Settlement

24

  1. Objector "Alternatives" To The Proposed Settlement Do Not Call Into Question The Reasonableness Of The

Settlement

.................................................................................26

CONCLUSION

27

i

TABLE OF AUTHORITIES

Cases

Page(s)

In re Activision Blizzard, Inc. S'holder Litig.,

124 A.3d 1025 (Del. Ch. 2015), as revised (May 21, 2015)

3, 18, 23

Am. Hardware Corp. v. Savage Arms Corp.,

136 A.2d 690 (Del. 1957)

18

In re Appraisal of Dell Inc.,

2015 WL 4313206 (Del. Ch. July 13, 2015), as revised (July 30,

2015)

15

Barkan v. Amsted Indus., Inc.,

567 A.2d 1279 (Del. 1989)

3

Blasius Indus., Inc. v. Atlas Corp.,

564 A.2d 651 (Del. Ch. 1988)

7, 8, 9

In re Celera Corp. S'holder Litig.,

59 A.3d 418 (Del. 2012)

25

CME Gp., Inc. v. Chi. Bd. Options Exch., Inc.,

2009 WL 1547510 (Del. Ch. June 3, 2009)

20, 21, 23

In re Columbia Pipeline Gp., Inc. Merger Litig.,

C.A. No. 2018-0484-JTL (Del. Ch. June 1, 2022) (TRANSCRIPT)

20, 21, 23

Coster v. UIP Cos.,

255 A.3d 952 (Del. 2021)

8

In re Cox Radio, Inc. S'holders Litig.,

2010 WL 1806616 (Del. Ch. May 6, 2010),

aff'd, 9 A.3d 475 (Del. 2010) (TABLE)

24

Crown EMAK P'rs, LLC v. Kurz,

992 A.2d 377 (Del. 2010)

18

In re Dole Food Co.,

2017 WL 624843 (Del. Ch. Feb. 15, 2017)

16, 18

ii

Enstar Corp. v. Senouf,

535 A.2d 1351 (Del. 1987)

18

Goldman v. Aegis Corp.,

1982 WL 525016 (Del. Ch. May 3, 1982)

6

Griffith v. Stein,

283 A.3d 1124 (Del. 2022)

22

Hartford Accident & Indem. Co. v. W. S. Dickey Clay Mfg. Co.,

24 A.2d 315 (Del. 1942)

10, 11

In re Madison Square Garden Ent. Corp. S'holders Litig.,

2023 WL 3696664 (Del. Ch. May 26, 2023)

18

Mercier v. Inter-Tel (Del.), Inc.,

929 A.2d 786 (Del. Ch. 2007)

7

MM Cos., v. Liquid Audio, Inc.,

813 A.2d 1118 (De1. 2003)

7, 8

Nottingham P'rs v. Dana,

564 A.2d 1089 (Del. 1989)

24

Orban v. Field,

1993 WL 547187 (Del. Ch. Dec. 30, 1993)

10, 11

In re Phila. Stock Exch., Inc.,

945 A.2d 1123 (Del. 2008)

19, 20, 21, 22, 23, 26

Polk v. Good,

507 A.2d 531 (Del. 1986)

26

In re Prodigy Commc'ns Corp. S'holders Litig.,

2002 WL 1767543 (Del. Ch. July 26, 2002)

23

In re Protection One, Inc. S'holder Litig.,

C.A. No. 5468-VCS (Del. Ch. Oct. 6, 2010) (TRANSCRIPT)

18

In re Snap Inc. Section 242 Litig.,

C.A. No. 2022-1032-JTL (Del. Ch. Mar. 29, 2023)

(TRANSCRIPT), appeal filed, No. 120, 2023 (Del. Apr. 21, 2023)

10, 11

iii

Strategic Inv. Opportunities LLC v. Lee Enters., Inc.,

2022 WL 453607 (Del. Ch. Feb. 14, 2022)

9

In re Triarc Cos.,

791 A.2d 872 (Del. Ch. 2001)

19, 23, 24

UniSuper, Ltd. v. News Corp.,

898 A.2d 344 (Del. Ch. 2006)

21, 22

Unocal Corp. v. Mesa Petrol. Co.,

493 A.2d 946 (Del. 1985)

8

Statutes & Rules

8 Del C. § 242(b)(2)

6, 10, 11

Ct. Ch. R. 23(b)(1)

24, 25

Ct. Ch. R. 23(b)(2)

24, 25

iv

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AMC Entertainment Holdings Inc. published this content on 08 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 June 2023 22:33:33 UTC.