Subsequent event

9 Months Ended

Dec. 31, 2015

Subsequent Events [Abstract]

Subsequent event

Subsequent event

Filing Definitive Proxy Statement

On January 15, 2016, the Company filed a Definitive Proxy Statement on Schedule 14A, together with a Schedule 13E-3, as amended, with the Securities Exchange Commission, to notify its stockholders that a special meeting of stockholders will be held on February 24, 2016 to consider and vote upon, among other things, the proposal to approve the Merger Agreement.

Stockholder litigation

The following complaint was filed on January 25, 2016 in the Superior Court of the State of California challenging the Merger: Robert Garfield v. RealD Inc. et al. (Case No. BC 608309). The action is a putative class action filed on behalf of the public stockholders of the Company and names as defendants the Company, its directors, its investment bank and employees thereof and the entities that were formed for effectuating the transaction. The complaint generally alleges that the individual defendants breached their fiduciary duties in connection with their consideration and approval of the Merger, and that the investment bank and entity defendants aided and abetted those breaches. The plaintiff seeks, among other relief, declaratory and injunctive relief enjoining the Merger.

The outcome of this lawsuit is uncertain and cannot be predicted with any certainty. An adverse judgment for monetary damages could have a material adverse effect on the operations and liquidity of the Company. A preliminary injunction could delay or jeopardize the completion of the Merger, and an adverse judgment granting permanent injunctive relief could indefinitely enjoin completion of the Merger. The Company believes that the claims asserted against it are without merit.