Lions Gate Bondholders Win Dismissal of Claims Related to Liability Management Transaction

Paul, Weiss won the dismissal of breach of contract claims brought against funds managed by Liberty Capital L.L.C., Voya Investment Management and other Lions Gate Entertainment Corporation bondholders who participated in a 2024 debt exchange transaction. The lawsuit, brought in New York state court by bondholders who did not participate in the debt exchange transaction, concerns approximately $1 billion in notes issued by Lions Gate in 2021, and the subsequent exchange transaction that amended the 2021 indenture agreement by allowing participating bondholders to trade their existing notes for new ones with more favorable terms.

New York Supreme Court Justice Joel M. Cohen dismissed all breach of contract claims against the participating bondholders, including our clients, holding that the participating bondholders do not have contractual obligations under the indenture agreement. The court further dismissed the claims against our clients, specifically, for lack of personal jurisdiction in New York. This is significant because the court allowed the plaintiffs to amend their complaint to add non-contractual claims against participating noteholders other than our clients, who were dismissed on personal jurisdiction.

The Paul, Weiss team includes litigation partner William Clareman, who argued the motion, and corporate partner Raphael Russo.