Lionsgate agrees to pay $7.5M to settle SEC charges over disclosure The SEC said it charged Lions Gate Entertainment with failing to "fully and accurately disclose to investors a key aspect of its effort to thwart a hostile takeover bid." Lions Gate agreed to pay $7.5M and admit wrongdoing to settle the SECís charges. According to the SEC, "Lions Gateís management participated in a set of extraordinary corporate transactions in 2010 that put millions of newly issued company shares in the hands of a management-friendly director. A purpose of the maneuver was to defeat a hostile tender offer by a large shareholder who had been locked in a battle for control of the company for at least a year. However, Lions Gate failed to reveal that the move was part of a defensive strategy to solidify incumbent managementís control, instead stating in SEC filings that the transactions were part of a previously announced plan to reduce debt."
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