Cineplex to be Awarded $1.24 Billion in Breach of Contract Ruling
Dec 15, 2021 By MarketDepth
Cineplex Inc. (TSX: CGX) gained over 18.9% during premarket hours after the Ontario Superior Court of Justice ruled in its favor in a breach of contract lawsuit against Cineworld Group PLC.
Finding that Cineworld repudiated the transaction to acquire Cineplex, the court awarded Cineplex $1.24 billion in damages and denied a counterclaim by Cineworld.
“We are pleased that the Court found Cineplex acted properly throughout this difficult period in our history. With roots that go back over 100 years, we are proud of the relationships we have maintained through this process and remain steadfastly committed to our guests, shareholders and team across Canada and the United States.”Ellis Jacob, President and CEO, Cineplex
Cineworld, on the other hand, has acknowledged the ruling and disagreed with it, stating “Cineplex does not expect damages to be payable whilst any appeal is ongoing.”