Kartoon Studios (TOON) wins $28,475,000 in lawsuit settlements, some still pending

Rhea-AI Filing Summary

Kartoon Studios, Inc. reported that it has entered into settlement agreements with five parties in the Augenbaum v. Anson Investments Master Fund LP et al. litigation. The Settling Parties agreed to pay aggregate settlement payments of $28,475,000 minus fees and expenses of plaintiff’s counsel, subject to certain terms and conditions, and the parties agreed to mutual releases.

The court approved settlement agreements with three of the five Settling Parties on June 2, 2026 and June 4, 2026, while the remaining two agreements are pending court approval. This resolution provides a defined cash recovery to Kartoon Studios and reduces uncertainty related to this lawsuit, although final amounts will be net of legal fees and contingent on full court approval.

Insights

Litigation and corporate finance analyst

Kartoon Studios secures a sizable litigation settlement, with part still pending court approval.

Kartoon Studios obtained settlement agreements from five parties in the Augenbaum v. Anson Investments Master Fund LP et al. case. The Settling Parties agreed to aggregate settlement payments of $28,475,000 minus fees and plaintiff counsel expenses, with mutual releases reducing ongoing legal exposure.

On June 2, 2026 and June 4, 2026, the court approved three of these settlements, while two remain subject to court approval. The net financial impact will depend on deducted legal fees and final court decisions, but the disclosed amount points to a meaningful cash inflow and reduced litigation overhang once fully finalized.

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

Aggregate settlement payments: $28,475,000 Number of settling parties: 5 parties Court-approved settlements: 3 agreements +2 more

5 metrics

Aggregate settlement payments $28,475,000 Agreed by five Settling Parties, before fees

Number of settling parties 5 parties Settlements in Augenbaum v. Anson Investments Master Fund LP et al.

Court-approved settlements 3 agreements Approved on June 2, 2026 and June 4, 2026

Pending settlements 2 agreements Awaiting court approval

Company trading symbol TOON Common Stock listed on NYSE American

Key Terms

settlement agreements, aggregate settlement payments, mutual releases, plaintiff’s counsel, +2 more

6 terms

settlement agreements legal

"the Company entered into settlement agreements with five parties"

aggregate settlement payments financial

"The Settling Parties agreed to pay the Company aggregate settlement payments of $28,475,000 minus fees"

mutual releases legal

"and 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.

plaintiff’s counsel legal

"minus fees and expenses of plaintiff’s counsel"

court approved legal

"the court approved the settlement agreements entered into with three of the Settling Parties"

pending court approval legal

"the remaining two settlement agreements are pending court approval"

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

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 2, 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. ☐

Item 8.01 Other Events.

From June 2nd through June 5th 2026, the Company entered into settlement agreements with five parties (the “Settling Parties”) 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 Parties agreed to pay the Company aggregate settlement payments of $28,475,000 minus fees and expenses of plaintiff’s counsel, subject to certain terms and conditions and the parties agreed to mutual releases. On June 2, 2026, and June 4, 2026 the court approved the settlement agreements entered into with three of the Settling Parties, the remaining two settlement agreements are pending court approval.

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 8, 2026	By:	/s/ Andy Heyward
	Name:	Andy Heyward
	Title:	Chief Executive Officer

2

FAQ

What litigation did Kartoon Studios (TOON) resolve through recent settlements?

Kartoon Studios reached settlements 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, involving five settling parties and mutual releases.

How much will Kartoon Studios (TOON) receive from the litigation settlements?

The settling parties agreed to pay Kartoon Studios aggregate settlement payments of $28,475,000 minus fees and expenses of plaintiff’s counsel. This figure represents the gross settlement amount before legal cost deductions and is subject to specified terms and conditions.

How many settlement agreements has the court approved for Kartoon Studios (TOON)?

The court has approved settlement agreements with three of the five settling parties. These approvals occurred on June 2, 2026 and June 4, 2026, while the remaining two settlement agreements are still pending court approval at this stage.

Are any Kartoon Studios (TOON) settlement agreements still pending court approval?

Yes. While three settlement agreements received court approval on June 2 and June 4, 2026, two additional settlement agreements remain pending court approval. Final completion of the entire settlement package depends on these remaining court decisions.

What did Kartoon Studios (TOON) and the settling parties agree to besides payment?

In addition to the aggregate settlement payments, Kartoon Studios and the settling parties agreed to mutual releases. Mutual releases generally mean each side releases the other from further claims related to the dispute, helping close out ongoing litigation exposure.

Does the Kartoon Studios (TOON) settlement amount include legal fees?

The disclosed settlement total of $28,475,000 is before legal fees, as it will be reduced by fees and expenses of plaintiff’s counsel. Consequently, Kartoon Studios’ ultimate net benefit will be lower than the gross amount stated.

Filing Exhibits & Attachments

3 documents

Other Documents

• EX-101 XBRL SCHEMA FILE 2.9 KB
• EX-101 XBRL LABEL FILE 33.4 KB
• EX-101 XBRL PRESENTATION FILE 21.8 KB