Cineplex has filed a lawsuit against its former suitor Cineworld Group, seeking damages over the UK company’s failed acquisition that could exceed the US$2.18 billion outstanding on the deal.
The Canadian movie theater operator filed the suit in Ontario Superior Court on Friday, July 3, detailing what it claims was “a case of buyer’s remorse” on the part of the UK company in the middle of a pandemic that’s seen cinemas across the world unable to operate.
Cineworld walked away from the US$2.8 billion deal on June 12, stating it had become aware of a material adverse effect and breaches by the Toronto-based company.
Cineplex claims it complied with its obligations under the agreement and vowed to “vigorously defend any allegation to the contrary.”
The Canadian chain is seeking damages that include the US$2.18 billion that Cineworld would have paid had the deal closed, minus the value of Cineplex’s securities retained by its holders.
Full Content: CBC
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