AMC Entertainment (NYSE:AMC) is in focus following a rather personal post from CEO Adam Aron. Shares of the movie theater chain have performed extremely well during the past month, currently up by more than 35%.
“Unfortunately, last year I became the victim of an elaborate criminal extortion by a third party who was unknown to me related to false allegations about my personal life,” said Aron. “Rather than give in to blackmail, I personally engaged counsel and other professional advisors and reported the matter to law enforcement.”
Afterwards, a federal criminal investigation began, which resulted in the extortionist’s arrest. The extortionist was then convicted of a felony and spent less than a year in jail. They were also sentenced in July 2023.
AMC Stock: CEO Adam Aron Reveals Extortion Attempt
Law enforcement requested Aron to keep quiet on the matter during the investigation and court case. After the July sentencing, Aron informed AMC’s board of the matter. Aron stated that the board reviewed the situation with independent outside counsel at law firm WilmerHale. As of today, the matter has been fully resolved.
Shareholders were previously unaware of this news, although it shouldn’t have a significant impact on AMC stock, as it does not relate to the company’s underlying business. In addition, the matter has already been resolved with the assistance of law enforcement.
In more positive news, shares of AMC have been on an absolute rampage, which is the result of the Taylor Swift | The Eras Tour concert film and Renaissance: A Film by Beyoncé. As of the Oct. 5, the Taylor Swift film had sold more than $100 million worth of advance tickets and will begin to show in theaters on Oct. 13 in 100 countries.
“It took less than 24 hours for the TAYLOR SWIFT | THE ERAS TOUR concert film to shatter AMC’s U.S. record for the highest ticket-sales revenue during a single day in AMC’s 103-year history,” said AMC.
Meanwhile, Beyoncé’s film will hit North American theaters on Dec. 1. Tickets in the U.S. will start at $22 before tax.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
