The CEO of AMC Theatres fell victim to an “elaborate criminal extortion” plot last year—but rather than give in to blackmail, he risked tainting his reputation to pursue an FBI investigation.
Adam Aron, 69, has led the movie theater chain since 2016. On Thursday, he took to the X platform to reflect on his career, saying he was proud of his “impeccable reputation”—but revealed there was a time when his good name came under threat.
“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,” he said.
He reported the matter to law enforcement, he said, risking “personal embarrassment” in order to launch an investigation.
“With my access to resources, if I did not stand up against blackmail, who could?” Aron, who earned an $18.9 million compensation package last year, said.
Throughout my long career, I have successfully led many prominent companies and am proud of my impeccable reputation. In recent years, AMC's millions of retail shareholders have played a central role in my life. Your passion for our company is one of my key motivators in doing…
— Adam Aron (@CEOAdam) October 12, 2023
The perpetrator has since been convicted and spent time in jail, Aron added. In the wake of the conviction this summer, Aron said he had involved AMC’s board—despite stressing that the attempted blackmail was “entirely a personal matter.”
“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,” he said in his social media post, before emphasizing that “the matter is closed.”
The media boss said he had chosen to make the matter public now because of how much he values AMC’s shareholders.
“Your passion for our company is one of my key motivators in doing all I can to help AMC survive so that eventually we can thrive,” the Harvard Business School graduate said.
The case
Although Aron, a father to two sons, did not explicitly name the criminal he fell victim to, his description of events matches a case brought before a Manhattan federal court in July.
The case referred to an unnamed high-profile CEO of a publicly traded company, a man in his late sixties who had attended Harvard University. News outlet Semafor reported this week that the case in question did indeed involve Aron.
Sakoya Blackwood was charged with time already served in jail for “catfishing” a millionaire CEO, posing as the individual’s former partner online, according to CNBC. Semafor reported that the CEO involved in the case had sent sexually explicit images and messages to Blackwood in a weeks-long text exchange.
She attempted to extort $300,000 from her victim in order to keep her quiet about their relationship, also posing as journalists threatening to expose the victim’s behavior.
The criminal, who served time in a Brooklyn jail, also obtained phone numbers of the victim’s son, threatening to make false claims to those close to him.
“Blackwood engaged in a campaign of harassment, intimidation, and threats against [the victim], including by sending harassing, threatening, and intimidating text messages to [the victim],” court documents seen by Fortune state.
Representatives for Aron did not immediately respond to Fortune's request for comment made outside normal business hours.
Shareholder reaction
Traders don’t seem perturbed by the case. Over the past five days AMC’s shares have gained 33%—steadily rising on Oct. 12, the day Aron made his personal news public.
Shares of the cinema chain have been buoyed by positive news out of the entertainment industry in recent months, including this summer’s “Barbenheimer” phenomenon, as well as announcements from Beyoncé and Taylor Swift that they would be releasing film versions of their smash-hit tours directly with AMC.
Swift’s Eras Tour release is already outpacing Barbie in terms of sellouts, with analysts expecting it to debut with $150 million in sales. AMC posted its highest single-day ticket revenue in its 103-year history within 24 hours of the film going on sale.
The company has gathered a roster of public shareholders after becoming an unexpected so-called meme stock during the pandemic.
In June 2021, ardent retail investors pushed AMC share prices to an all-time high of $230.
The individual shareholders, who refer to themselves as “apes,” posted words of encouragement in response to Aron’s revelatory post on Thursday.
“We as apes, as your friends and family, appreciate…all that you have been doing; no matter the difficulties. We know the battle, and we apes are not leaving,” one wrote.
Another added: “I commend you for your grit and tenacity! Proud to have you as our fearless leader of AMC! Please don’t give up the fight and keep up the great work!”
