The Candian movie theater company, Cineplex has come into $965 million after winning their breach of contract lawsuit against Cineworld. In 2019, the two companies signed a contract where Cineworld agreed to purchase Cineplex for $2.81B, creating the largest movie theater chain globally. But in 2020, Cineworld claimed they could break the contract because Cineplex was responsible for “breaching the terms of the agreement” due to”material adverse effect(s).” Cineworld countersued, claiming Cineplex was experiencing “buyers remorse” for damages and losses and won.
“Cineplex’s lawsuit at the time alleged that Cineworld had decided to cancel the deal due to the unforeseeable effects of the COVID-19 pandemic. However, contractually neither side could pull out of the deal due to outbreaks of illness, which the pandemic very much fell under.”
Cineplex CEO, Ellis Jacob, said in a statement in regards to the lawsuit: “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.”
– Excerpt from Forbes by Josh Wilson. Read the full article here.
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