The New York Supreme Court has joined with the British Columbia Supreme Court in dismissing Carl Icahn's complaint against Lionsgate in its entirety.
It's the latest setback for corporate raider Icahn in his attempt to take over the studio.
Icahn alleged that Lionsgate breached a 10-day "stand-still" agreement when its board approved a debt-for-equity swap that diluted his shares at a crucial time in his takeover attempt of the studio last July.
Icahn had sought help from the court to unwind that debt-for-equity transaction.
Read the New York Supreme Court's decision here.
The Canadian court ruled against Icahn in November — a decision which is currently under appeal.
The New York court's decision also follows a decision by a federal court last week to throw out Lionsgate's suit against Icahn, in which the raider is accused of "plotting" to interfere with the studio's quest to buy MGM last year.
On July 9, 2010, Icahn and Lionsgate signed a two-page agreement whereby each party would consider potential compromise transactions during a 10-day period in lieu of continuing their battle for ownership of the studio.
Lionsgate was required under the agreement to refrain from transactions involving 5 percent or more of its stock.
In his suit, Icahn alleged that the Lionsgate board of directors met prior to the expiration of the agreement on July 19 to discuss the fateful debt-for-equity transaction that was ultimately agreed to on July 20.
Icahn claims Lionsgate board member Mark Rachesky organized a transaction with John Kornitzer (also a defendant) and his Kornitzer Capital Management that diluted the raider's stock.
