BOCA RATON, Fla., May 23, 2016 /PRNewswire/ -- iPic®, a
pioneering industry leader of award-winning night-out entertainment
destinations that include luxury movie theaters and restaurants,
today announced that it defeated an attempt by AMC Entertainment
(NYSE: AMC) to dismiss iPic's antitrust claims in Texas.
Instead, the court found that there was sufficient evidence of an
antitrust conspiracy between AMC and Regal Entertainment
(NYSE: RGC) that targeted iPic and will allow iPic's
conspiracy claims to go to trial.
The ruling by the 234th District Court in
Harris County, Texas (Hon.
Wesley Ward, presiding) on
May 20, 2016 was made after a lengthy
hearing, in which iPic presented evidence that Regal and AMC had a
common motive to conspire and have acted in lockstep against iPic
in ways that are against their economic self-interest, unless they
are working together to kill new competition. iPic presented
evidence, based on internal AMC documents, that AMC and Regal
radically departed from the movie industry's previous practices,
including by making clearance demands against iPic within hours of
each other to the same studios, a year or more before the targeted
iPic theaters were even built.
"We are extremely pleased that the Court denied AMC's attempt to
escape liability in this important suit to stop anticompetitive
attacks in the industry. This is a win for iPic, for the
movie-going public, and for all independent movie theaters," said
Hamid Hashemi, CEO of iPic
Theaters.
In November 2015, iPic filed suit
alleging that these dominant theater chains were using unlawful
practices to stifle competition, force smaller exhibitors out of
business, and even prevent them from securing leases to develop
theaters in certain locations. By industry standards, these
boutique theaters are not in substantial competition with the
dominant megaplex chains, yet Regal and AMC threatened to boycott
studio films if the studios license first-run films to the new
theaters.
In January 2016, iPic won an
injunction preventing Regal from continuing to engage in
anticompetitive clearance demands as part of an effort to prevent
the licensing of hit movies to iPic's theater in Houston, Texas. Regal was using its dominant
market position to prevent the licensing of first-run films to be
played in the same market at the same time. The court found
the luxury boutique iPic theater was not in substantial competition
with Regal's Greenway Grand Palace 24 megaplex theater and ordered
Regal to stop demanding that the studios refuse to license the same
movies to the iPic theater that play in the Regal
Greenway.
It was reported last year that the Antitrust Division of the
U.S. Department of Justice and several state attorneys general,
including Texas, are investigating
the competitive practices of Regal, AMC, Cinemark, and others
regarding exclusionary boycott demands and potential violations of
antitrust laws.
About iPic®
Established through its predecessor in 2006 and headquartered in
Boca Raton, FL, iPic-Gold Class
Entertainment, LLC, (iPic®) is regarded as the nation's
fastest-growing affordable luxury movie theater brand. A pioneering
industry leader, iPic®'s mission is to provide visionary,
entertainment escapes, presenting high quality, chef-driven
culinary and mixology in unique destinations that include premium
movie theaters and award-winning restaurants. iPic® Theaters
currently operates 13 locations with 97 screens in Arizona, California, Florida, Illinois, Maryland, Texas, Washington, and Wisconsin – with new locations planned for
South Florida, Texas, New
Jersey, Connecticut, and
New York. Please visit us
at www.ipic.com.
PRESS/MEDIA CONTACT: Michelle
Soudry, The Gab Group, 561-750-3500,
msoudry@thegabgroup.com
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SOURCE iPic Entertainment