Kartoon Studios, Inc. 8-K

What Happened

• Kartoon Studios, Inc. (TOON) announced on June 11, 2026 that it entered into a settlement agreement with an additional party (the “Settling Party”) in the litigation Augenbaum v. Anson Investments Master Fund LP et al., Case No. 1:22-CV-00249-AS (S.D.N.Y.).
• The filing states the Settling Party agreed to pay the Company aggregate settlement payments of "$50,00,000" minus fees and expenses of plaintiff’s counsel, subject to terms and conditions; the U.S. District Court approved this settlement on June 11, 2026. (Note: the filing’s dollar amount appears to contain a typographical formatting error.)

Key Details

• Case: Augenbaum v. Anson Investments Master Fund LP et al., No. 1:22-CV-00249-AS (S.D.N.Y.).
• Settlement approved by the court: June 11, 2026.
• Payment described in filing as aggregate settlement payments of "$50,00,000" less plaintiff counsel fees/expenses.
• All settlement agreements with the settling parties have now been court-approved; the lawsuit continues against two remaining defendants who have not settled.

Why It Matters

• A court-approved settlement means Kartoon Studios may receive settlement proceeds (net of plaintiff counsel fees and expenses), which could provide cash or reduce potential future liabilities tied to the settling parties.
• The company’s litigation exposure is reduced only with respect to the settling parties; two defendants remain in the case, so the overall dispute is not fully resolved.
• Investors should note the filing’s payment figure formatting issue and that timing and net amount received depend on the settlement terms and deduction of legal fees—check future disclosures for confirmation of the actual cash received and any material financial impact.