March 13, 2014 / 4:25 PM / 4 years ago

Lions Gate admits in U.S. SEC settlement to misleading investors

WASHINGTON, March 13 (Reuters) - Entertainment company Lions Gate Entertainment Corp admitted on Thursday to misleading investors in 2010 when it was facing a hostile takeover and agreed to pay $7.5 million to settle civil charges, U.S. regulators announced.

The settlement, with the U.S. Securities and Exchange Commission, marks the sixth time now that the agency has managed to extract an admission of wrongdoing from a defendant since changing its settlement policy last June.

The SEC’s case relates to a hostile bid by investor Carl Icahn for the company, though the charging documents do not cite Icahn by name.

The SEC alleges the company engaged in a series of transactions that put millions of newly issued shares into the hands of a management-friendly director in order to defeat the hostile tender offer, without explaining the maneuver properly to investors.

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