Investors consider legal action against Entain due to decreasing share value
Entain, a leading online gambling company, is facing a significant challenge as a group of institutional investors has filed a claim against the company at the London High Court. The lawsuit, filed by law firm Fox Williams, seeks over £150 million in compensation.
The lawsuit was reportedly instigated by the decline in Entain's share price, which has seen a plummet of 44% from 2023. The decline isn't entirely attributable to the investigation-related trouble and is also the result of several riskier business moves.
Despite the legal battle, Entain is determined to fight back. Slaughter and May, a prestigious law firm, has been enlisted to assist in the defense.
Gavin Isaacs, the newly-appointed CEO of Entain, is set to step into his role on September 2. Isaacs, who has been a member of Galaxy Gaming since 2019, is preparing for his tenure at Entain by stepping down from his position at Galaxy Gaming. He has been instrumental in steering Galaxy Gaming towards success.
Isaacs acknowledged the challenging nature of his new appointment at Entain, especially in the wake of the DPA (Deferred Prosecution Agreement) with the UK Gambling Commission. However, he is ready to provide Entain with his undivided attention, ensuring the move will allow him to focus solely on the company's recovery.
Sources suggest that the entities behind the lawsuit are mostly firms based in the United States, as well as some in the UK and other countries. The investor group suing Entain includes public pension funds and asset managers, according to reports. However, there are no search results indicating which institutions have filed a legal dispute against Entain or where the application was submitted.
Investors remain uneasy due to the decline in Entain's share price. The decline is a concern for many, but with Isaacs at the helm, there is hope that Entain can navigate through these challenging times and emerge stronger.
As the situation unfolds, Entain and its new CEO will be under close scrutiny. The coming months will be critical in determining the company's future direction and its ability to recover from this legal and financial setback.
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