Case Details

Year Initiated/Committed

2005

Year Resolved

2005

Settlement Amount

n/a

Court

U.S. District Court for the District of Columbia

Docket Number

05-2446

Lead State

DC

Participating States

DC

Defendant(s)

AMC Entertainment Inc., Loews Cineplex Entertainment Inc.

Case Description

District of Columbia filed suit in US District Court in the District of Columbia challenging the proposed merger of movie chains AMC and Loews. According to the complaint, the proposed merger would have given AMC and Loews control of five of the six first-run mainstream movie theaters in DC and a box office share in DC of 78% of first-run mainstream theaters. The stipulated final judgment requires the divestiture of AMC Union Station theater and Loews 4000 Wisconsin Avenue theater to a competitor (or competitors) that the DC AG approves. The proposed settlement also prevents AMC and Loews from entering into contracts restricting the rights of theater landlords to rent former AMC and Loews theaters to new theater tenants (a practice that had been employed by Loews in DC). DC participated in a joint multistate/USDOJ investigation at the earliest stages of inquiry. However, the USDOJ did not seek relief in DC. As a result, the DC investigation/complaint/settlement was distinct from the federal complaint and settlement covering NY, IL, WA, and MA.