Cineplex awarded $1.24 billion in damages in takeover suit, Cineworld to appeal

Cineplex Inc. says it has won a court battle against a U.K. theatre giant that was due to purchase the Canadian cinema company before the COVID-19 pandemic struck.

TORONTO — Cineplex Inc. says it has won a court battle against a U.K. theatre giant that was due to purchase the Canadian cinema company before the COVID-19 pandemic struck.

Toronto-based Cineplex announced Thursday evening that the Ontario Superior Court of Justice ruled in its favour in a breach of contract lawsuit against its former suitor Cineworld Group PLC.

Judge Barbara Conway awarded damages of $1.24 billion and denied a counterclaim by Cineworld, Cineplex said.

“We are pleased that the court found Cineplex acted properly throughout this difficult period in our history,” said Cineplex president and CEO Ellis Jacob in a statement.

But Cineworld isn’t giving up. Shortly after Cineplex announced its victory, Cineworld acknowledged the ruling and noted that the court had also ordered it to pay $5.5 million for lost transaction costs.

“Cineworld disagrees with this judgment and will appeal the decision,” the company said in a statement.

“Cineworld does not expect damages to be payable whilst any appeal is ongoing.”

The acrimony between the two cinema chains began when Cineworld walked away from its deal to acquire Cineplex in June 2020.