A new lawsuit has now been filed against Antara in the wake of falling share prices.
Investors believe the hedge fund has taken advantage of its deal with AMC Entertainment (NYSE:AMC), inevitably affecting all securities holders.
Antara Capital is now facing federal securities litigation seeking the return of its alleged short-swing profits.
“The lawsuit, filed by two AMC investors, accuses the hedge fund, its affiliates, and founder Himanshu Gulati of making more than $20 million on sales of APE units and AMC common stock purchased less than six months earlier.
Federal securities laws require corporate leaders and major stockholders to give such short-swing profits back to the company, a rule meant to curb insider trading,” says Bloomberg.
The hedge fund said in a court filing last month that it has been getting threatening phone calls from people claiming to be AMC stockholders.
That filing asked the Delaware judge to block the theater operator’s highly engaged base of retail investors from seeing confidential court files.
It cited concerns that additional disclosures could “threaten the health and safety” of Antara employees.
The judge ultimately gave the investors restricted access.
The new securities lawsuit was filed Tuesday in the US District Court for the Southern District of New York. The investors leading the case, Dennis Donoghue and Mark Rubenstein, said they made amend their roughly $20 million damages request as they learn more details about the trades they’re targeting.
The shareholders are represented by David Lopez of Southampton, N.Y., and Miriam Tauber of New York.
The case is Donoghue v. Antara Cap. Master Fund LP, S.D.N.Y., No. 23-cv-4985, complaint filed 6/13/23.
A New Filing Shows Antara Dumps Millions of APE Shares
A new filing shows Antara Capital has dumped millions of APE (NYSE:APE) shares while also playing big put options against AMC Entertainment common stock.
Investors have been quick to point out AMC stock has had major sell walls keeping it just below $5 per share.
APE stock is down more than -75% since its inception last year, with its biggest seller being Antara Capital, also its largest institutional holder.
In March, the company disposed more than 48 million APE shares valued at a whopping $72.4 million.
A month later, the company disclosed it was betting against AMC Entertainment while it sold company stock.
In May, Antara Capital disclosed it had another 55 million shares in put options valued at more than $277 million; one of the largest bets put against the movie theatre chain.
Now the company has reported acquiring more than 2.7 million shares in put options in AMC Entertainment stock for the month of June, so far.
Antara Capital also disposed a total of 3,984,800 shares of APE at $1.60.
AMC stock is currently up more than +24% this year-to-date while APE is up more than +34% this year-to-date.
Also Read: A New Analysis Projects Big Price Surge in GameStop
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5 years later……
Antara cleared of any wrongdoing!!!!!!!!
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