Kartoon Studios, Inc. 8-K

What Happened

• Kartoon Studios, Inc. (TOON) filed an 8-K (June 8, 2026) announcing that from June 2–5, 2026 the company entered into settlement agreements with five parties in the litigation captioned Augenbaum v. Anson Investments Master Fund LP et al., Case No. 1:22-CV-00249-AS, in the U.S. District Court for the Southern District of New York.
• The Settling Parties agreed to pay Kartoon Studios aggregate settlement payments of $28,475,000, subject to deduction for plaintiff’s counsel fees and expenses, and the agreements include mutual releases. The court approved settlements with three of the parties on June 2 and June 4, 2026; two agreements remain pending court approval.

Key Details

• Total agreed settlements: $28,475,000 (aggregate), less plaintiff counsel fees and expenses.
• Number of settling parties: five.
• Court approvals: three settlements approved by the court on June 2 and June 4, 2026; two pending approval.
• Case: Augenbaum v. Anson Investments Master Fund LP et al., Case No. 1:22-CV-00249-AS (S.D.N.Y.).

Why It Matters

• This development could produce a meaningful cash recovery for Kartoon Studios, improving liquidity or providing a one-time gain, but actual proceeds will be reduced by plaintiffs’ counsel fees/expenses and depend on final court approvals for two settlements.
• Investors should note the material amount ($28.475M aggregate) and that timing and net proceeds remain subject to the terms, fees, and remaining judicial approvals described in the 8-K.