The Ontario Superior Court of Jusice has ruled in favor of Cineplex in a legal battle about breach of contract by Regal owner Cineworld Group PLC. Cineplex had been awarded damages of $1.24 billion in lost synergies from the takeover deal with the group which was later abandoned and $5.5 million in transaction costs. The Court of Justice denied Cineworld's counterclaims.

In a statement made by Cineplex president and CEO Ellis Jacob, he said that, “We are pleased that the court found Cineplex acted properly throughout this difficult period in our history. With roots that go back over 100 years, we are proud of the relationships we have maintained through this process and remain steadfastly committed to our guests, shareholders and team across Canada and the United States.”

Earlier this year, in June, Cineworld's $2.1 billion plan to take over Cineplex was called off. Had the takeover been complete, it would have created one of the world's largest cinema companies with more than 11,000 screens globally. However, the COVID-19 situation shut down the operations of cinemas and created high debt and liquidity concerns. Cineworld subsequently reopened in April.

Cineworld will appeal the court decision and stated publicly that, "Cineworld disagrees with this judgement and will appeal the decision. Cineworld does not expect damages to be payable whilst any appeal is ongoing."