Kartoon Studios corrects and confirms $50M settlement

Kartoon Studios, Inc. corrected an earlier disclosure and confirmed that a settlement agreement with an additional party in the Augenbaum v.

Rhea-AI Filing Summary

Kartoon Studios, Inc. corrected an earlier disclosure and confirmed that a settlement agreement with an additional party in the Augenbaum v. Anson Investments Master Fund LP et al. action provides for aggregate settlement payments of $50,000,000 to the company, minus fees and expenses of plaintiff’s counsel.

The court approved this additional settlement on June 11, 2026, and has now approved all settlement agreements with the settling parties. The lawsuit continues against two remaining defendants, while Kartoon Studios and the settling parties have agreed to mutual releases.

Positive

• Court-approved $50M settlement payments: An additional settling party agreed to pay Kartoon Studios aggregate settlement payments of $50,000,000, minus fees and expenses of plaintiff’s counsel, with the agreement approved by the court on June 11, 2026.

Negative

• None.

Insights

Litigation and special-situations analyst

$50M court-approved settlement enhances Kartoon’s potential cash inflow but litigation continues.

Kartoon Studios now has a court-approved settlement under which an additional settling party will pay $50,000,000 to the company, less plaintiff counsel fees and expenses. This amends an earlier disclosure that understated the amount due to a missing zero.

The approval on June 11, 2026 means all settlements with participating parties in the Augenbaum action are now approved, though the case proceeds against two remaining defendants. The realized benefit will depend on actual collections after fees, expenses and satisfaction of the settlement’s terms and conditions.

8-K Event Classification

Item 8.01 — Other Events

1 item

Item 8.01 Other Events Other

Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

Key Figures

Settlement payments to company: $50,000,000 Settlement approval date: June 11, 2026 Remaining defendants: 2 defendants

3 metrics

Settlement payments to company $50,000,000 Aggregate settlement payments from additional settling party, minus plaintiff counsel fees and expenses

Settlement approval date June 11, 2026 Date court approved additional settlement agreement

Remaining defendants 2 defendants Action continues against two remaining defendants after settlements approved

Key Terms

settlement agreement, aggregate settlement payments, mutual releases, Other Events, +1 more

5 terms

settlement agreement financial

"the Company entered into a settlement agreement with an additional party"

A settlement agreement is a legally binding deal where two sides resolve a dispute—often a lawsuit—by agreeing on terms such as payments, actions, or changes in behavior instead of continuing the case to trial. For investors it matters because settlements can create immediate costs, limit future liabilities or risks, and change a company's cash flow, reputation, or ongoing obligations much like paying a negotiated bill to avoid a lengthy, uncertain fight.

aggregate settlement payments financial

"The Settling Party agreed to pay the Company aggregate settlement payments of $50,000,000"

mutual releases financial

"the parties agreed to mutual releases"

A mutual release is a legal agreement in which two parties agree to give up any present or future claims against each other arising from a specified matter, effectively ending disputes and preventing new lawsuits on those issues. For investors, mutual releases matter because they remove or limit potential liabilities and uncertainty—like both sides agreeing to drop their complaints and walk away—which can affect a company’s legal exposure, financial reserves, and perceived risk.

Other Events regulatory

"Item 8.01 Other Events."

plaintiff’s counsel regulatory

"minus fees and expenses of plaintiff’s counsel"

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Kartoon Studios (TOON) correct in its latest 8-K/A?

Kartoon Studios corrected a clerical error that understated a settlement amount by one zero. The company confirmed that the additional party’s settlement requires aggregate payments of $50,000,000, minus plaintiff counsel fees and expenses, instead of the smaller figure previously implied.

How much is Kartoon Studios (TOON) expected to receive from the new settlement?

The additional settling party agreed to pay Kartoon Studios aggregate settlement payments of $50,000,000, minus fees and expenses of plaintiff’s counsel. These payments relate to the Augenbaum v. Anson Investments Master Fund LP et al. litigation pending in the Southern District of New York.

When was the Kartoon Studios $50 million settlement approved by the court?

The court approved the additional settlement agreement on June 11, 2026. With this approval, the court has now approved all settlement agreements that Kartoon Studios has entered into with settling parties in the Augenbaum litigation, leaving only two remaining defendants in the action.

Does the $50M settlement end the Augenbaum litigation for Kartoon Studios (TOON)?

No, the action continues against two remaining defendants. However, the court has approved all settlement agreements Kartoon Studios reached with settling parties, including the new agreement providing $50,000,000 in aggregate payments to the company, minus plaintiff counsel fees and expenses.

What are the main terms of Kartoon Studios’ new settlement agreement?

Kartoon Studios and an additional settling party agreed that the party will pay aggregate settlement payments of $50,000,000, less fees and expenses of plaintiff’s counsel. The parties also agreed to mutual releases, and the settlement is subject to certain terms and conditions and court approval, which has been granted.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 06/16/2026 - 12:41 PM Learn about SEC filing dates

true Correcting the settlement amount 0001355848 0001355848 2026-06-11 2026-06-11 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K/A

(Amendment No. 1)

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 11, 2026

KARTOON STUDIOS, INC.

(Exact name of registrant as specified in its charter)

Nevada (State or other jurisdiction
of incorporation or organization) 001-37950 (Commission
File Number) 20-4118216 (I.R.S. Employer
Identification No.)

190 N. Canon Drive, 4th Fl., Beverly Hills, CA 90210

(Address of principal executive offices) (Zip Code)

(310) 273-4222

Registrant’s telephone number, including area code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	TOON	NYSE American LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

EXPLANATORY NOTE

On June 16, 2026, Kartoon Studios, Inc. filed a Current Report on Form 8-K (the “Original Report”) related to a settlement agreement with an additional party in the action captioned Augenbaum v. Anson Investments Master Fund LP et al., Case No. 1:22-CV-00249-AS, pending in the United States District Court for the Southern District of New York. Due to a clerical error, the settlement amount disclosed in the body of the Original Report was inadvertently missing a zero. This Amendment No. 1 on Form 8-K/A is being filed for the sole purpose of disclosing the correct settlement amount of $50,000,000. All disclosures contained in the Original Report remain unchanged.

Item 8.01 Other Events.

On June 11, 2026, the Company entered into a settlement agreement with an additional party (the “Settling Party”) in the action captioned Augenbaum v. Anson Investments Master Fund LP et al., Case No. 1:22-CV-00249-AS, pending in the United States District Court for the Southern District of New York. The Settling Party agreed to pay the Company aggregate settlement payments of $50,000,000 minus fees and expenses of plaintiff’s counsel, subject to certain terms and conditions and the parties agreed to mutual releases. On June 11, 2026, the court approved the settlement agreement entered into with such additional Settling Party. With this approval, the court has now approved all of the settlement agreements entered into with the settling parties. The action continues against the two remaining defendants.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	KARTOON STUDIOS, INC.
Date: June 16, 2026	By:	/s/ Andy Heyward
	Name:	Andy Heyward
	Title:	Chief Executive Officer

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