Kartoon Studios, Inc. 8-K/A

What Happened

• Kartoon Studios, Inc. announced in an 8-K (Item 8.01) that on June 11, 2026 it entered into and received court approval for a settlement agreement with an additional party in the case Augenbaum v. Anson Investments Master Fund LP et al., Case No. 1:22-CV-00249-AS, pending in the U.S. District Court for the Southern District of New York.
• The settling party agreed to pay aggregate settlement payments of $50,000,000, subject to deductions for plaintiff’s counsel fees and expenses and other terms and conditions; the parties also agreed to mutual releases. With this approval, the court has approved all settlement agreements with the settling parties to date. The action continues against two remaining defendants.

Key Details

• Settlement amount: $50,000,000 aggregate payments (net amount reduced by plaintiff counsel fees and expenses).
• Court approval date: June 11, 2026.
• Case: Augenbaum v. Anson Investments Master Fund LP et al., Case No. 1:22-CV-00249-AS (SDNY).
• Status: All settling-party agreements now approved; litigation remains pending against two defendants.

Why It Matters

• This settlement represents a significant claimed recovery tied to ongoing litigation and may affect Kartoon’s potential future cash receipts or balance sheet outcomes once net proceeds and timing are determined.
• The mutual release with the settling party reduces Kartoon’s exposure to claims from that party, but the overall lawsuit is not fully resolved because two defendants remain.
• Investors should note the settlement amount and court approval but also that the filing states deductions, conditions and timing apply—net proceeds and exact financial impact were not specified in the 8-K.