At first look it appears that AMC Entertainment Holdings Inc AMC CEO Adam Aron almost got caught with his pants down ... again. But in this case, the outspoken CEO was the victim.
What Happened: Semafor published a report Thursday morning titled "AMC's CEO shared sexually explicit photos and texts in blackmail plot," but the headline is a bit misleading. The real story seems to be that Aron, who has been married since 1987, was the victim of an "elaborate criminal extortion."
Sakoya Blackwood attempted to extort hundreds of thousands of dollars from Aron using fake identities last year. In March 2022, Blackwood started texting Aron, claiming to be someone named "Mia." She sent photos of a Russian model and Aron reportedly mistook her for someone he had a previous relationship with.
Court documents show the AMC CEO asked the woman if she was someone who had done "unmentionable things" to him in the past. Although it's not clear why, he sent explicit photos to her of himself and another woman.
Blackwood then used other burner phones to contact Aron, claiming to be several other people including a fake ex-boyfriend and a Vanity Fair reporter who had seen the text messages.
She tried to get Aron to pay hundreds of thousands of dollars in hush money, threatening to make the messages and photos public by selling the story to the press.
Aron didn't pay her a dime or share any corporate information with her that he shouldn't have. Instead, he reported the incident to the FBI.
Blackwood was federally indicted last year and she pleaded guilty to the charges in the summer. Aron told AMC's board about the events after she was sentenced to time served in July. He told the public about it Thursday morning.
"Unfortunately, last year I became the victim of an elaborate criminal extortion by a third party who was unknown to me related to false allegations about my personal life," Aron said in a post on X.
"Rather than give in to blackmail, I personally engaged counsel and other professional advisors and reported the matter to law enforcement. I did so knowing I risked personal embarrassment. But with my access to resources, if I did not stand up against blackmail, who could?"
Aron continued, "This was entirely a personal matter. I was asked by law enforcement to keep this matter confidential during their investigation and subsequent court case. Shortly after the extortionist's July 2023 sentencing, I informed AMC's Board of Directors which thoroughly reviewed these events with independent outside counsel at WilmerHale. As I said above, this indeed was entirely a personal matter, and the matter is closed."
AMC's board told Semafor it also determined that it was a personal matter and considers the issues resolved.
AMC Price Action: AMC shares were up 1.58% at $10.59 at publication Thursday, according to Benzinga Pro.
Photo:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
