AMC discloses government investigations, shares fall
Leawood-based AMC Entertainment Holdings Inc. disclosed Monday that it received two requests for documents from government agencies relating to an ongoing investigation of anticompetitive conduct.
Shares of the company fell almost 2 percent in midday trading Monday. The company operates more than 4,900 screens in 347 movie theaters.
AMC said it received the separate requests for documents last week from the U.S. Department of Justice and the office of the Ohio attorney general. The company said the request from the Justice Department is in connection with an investigation under the Sherman Antitrust Act, which prohibits companies from anticompetitive behavior.
The documents requested relate to film clearances and some of its joint ventures, AMC said in a filing with the Securities and Exchange Commission. The company said that it does not believe it has violated federal or state antitrust laws and is cooperating with the authorities.
A spokesman from the Justice Department and a spokeswoman from the Ohio attorney general office declined to comment.
Reports had surfaced earlier this year that the Justice Department had ordered AMC, Regal Entertainment Group, and Cinemark Holdings to supply documents as part of an investigation into possible anticompetitive practices.
The government reportedly is examining allegations from independent theater owners across the country that the big chains are using their market clout to block smaller rivals from getting first-run movies.
The investigation is being closely watched in the exhibition industry and in Hollywood because it could force changes in how major motion pictures are distributed and lead to fines for the big chains.
AMC chief executive Gerry Lopez said several weeks ago that his company is “playing by rules that have been long established. There are 600-plus exhibitors in this country. There are three or four exhibitors who are irritated by it. My guess is they have made some bad business calls."
This story was originally published June 1, 2015 at 11:54 AM with the headline "AMC discloses government investigations, shares fall."