Movie theater chain sues insurers over ‘hundreds of millions’ of COVID-related losses

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Regal Cinemasa major movie theater chain that has “6,885 screens in 514 theaters in 42 states as well as American Samoa, the District of Columbia, Guam and Saipan,” sued its insurers for “hundreds of millions” of dollars in losses during the Ongoing COVID -19 pandemic.

Credit: ABC

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According to a recent NBC 4 Los Angeles article on the situation:

Regal Cinemas is suing three insurers for allegedly failing to honor their political obligations to compensate the cinema chain for business losses suffered during government-ordered coronavirus-related shutdowns.

The defendants named in the lawsuit filed Thursday in Los Angeles Superior Court are Allianz Global Risks US Insurance Co., Liberty Mutual Fire Insurance Co. and Zurich American Insurance Co.

royal cinemas sign
Credit: ABC

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The report went on to share details of the Regal Cinemas lawsuit, which states, “Regal has suffered hundreds of millions of dollars in financial losses since March 2020 as a result of the COVID-19 pandemic, including lost ticket sales , dealership sales and additional fees. expenses. »

The theater chain also alleged that it continued to suffer losses due to a shortage of personnel as the highly contagious variant of Omicron exploded across the United States.

outdoor amc
Credit: Disney/AMC

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According to the lawsuit, the insurers dismissed Regal’s claims in September and October 2020, and their “refusal to cover Regal’s losses has no justifiable basis.”

Regal isn’t the only theater chain to suffer from the ongoing COVID-19 pandemic. During the lockdown in 2020 and 2021, theater giants like AMC and Cinemark also struggled, with AMC even selling stock to stay afloat.

indoor amc
Credit: Disney/AMC

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And, sadly, many local movie theaters across the United States have even been forced to close their doors permanently.

Now, however, it looks like the tide is turning for theaters, especially when it comes to major blockbusters like the Marvel Cinematic Universe films. When Tom Holland and Benedict Cumberbatch are Spider-Man: No Coming Home debuted on December 17, 2021, it was the “greatest opening night ever” for Cinemark.

Tobey Maguire, Tom Holland and Andrew Garfield as Spider-man
Credit: Marvel Studios/Sony Pictures

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AMC Theaters President and CEO Adam Aron also expressed his excitement about returning moviegoers to theaters for the latest MCU project:

“Needless to say, we are still so happy to see a record number of people returning to the cinema to capture the magic offered in AMC theatres. Yesterday for its opening night [Thursday showings], we welcomed approximately 1.1 million guests to watch Spider-Man: No Way Home in our US theaters. Our congratulations go to Sony Pictures for this wonderfully successful new film.

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Credit: Sony Pictures/Marvel Studios

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As for Regal Cinemas’ lawsuit, no decision has been made as of press time.

Stay tuned to Inside the Magic for the latest movie news.

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