On December 3, 2010, Lionsgate filed an amended complaint in connection with its lawsuit in the United States District Court for the Southern District of New York against Carl Icahn, Brett Icahn and various other members of the Icahn Group.
The amended complaint alleges that Carl Icahn, Brett Icahn and others collectively known as the Icahn Group, attempted to seize control of Lionsgate by discrediting its management in their proposed merger with MGM, all the while secretly studying the merits of and amassing large stakes in MGM to gain control of MGM and Lionsgate in the merger.
Icahn is alleged to have told the Lionsgate board that management’s strategy of merging with MGM was “misguided” and would end in “oblivion” and “bankruptcy.”
In a statement issued today, the members of the Icahn Group said they believe that Lionsgate’s lawsuit and its claims continue to be completely without merit. In a November 2, 2010 court filing, Carl Icahn disclosed that he purchased approximately $145 million of MGM debt in November and December 2008, approximately $51 million in July and November 2009, and an additional $400 million between August and October 2010.