Activist shareholder Carl Icahn has filed suit against Lionsgate for its recent debt-for-equity swap, which diluted Icahn's shares from 37.3% to 33.5%, according to THE HOLLYWOOD REPORTER. Lionsgate conducted the swap with investor Mark Rachesky. Both Lionsgate and Rachesky are listed in the suit, which also includes Lionsgate's board of directors, Kornitzer Capital Management and Kornitzer's head John Kornitzer.

Icahn recently issued another hostile bid to take over the firm, offering $6.50 per share. His plan is to gain as much control of the firm as possible before the next shareholder's meeting, where he plans a proxy fight.

Icahn claims the swap breaks the British Columbia Securities Commission's statutory jurisdiction. Lionsgate is based in Vancouver.