A lawsuit filed against private investors by over one hundred former employees against private investors of FanDuel is accusing them of cheating them from money they believe they are owed as a result of the company being sold to Paddy Power Betfair.
Filed in the New York Supreme Court, the lawsuit is being supported by Fanduel’s Nigel Eccles, a co-founder of the company and four of its other founding partners. The lawsuit claims that private equity firms KKR & Co and Shamrock Capital Advisors and directors on the board at Fanduel at the time of the sale purposefully undervalued its shares in order to for benefit themeselves. Prior to the sale in 2018, FanDuel was valued at $465m.
This comes on the wake a lawsuit that made similar claims in Scotland by Fanduel founders. While that lawsuit was not successful, the difference was, it was not backed by so many ex-employees. The lawsuit is claiming that the FanDuel’s Articles of Association stated that private equity firms and preferred shareholders would, from the proceeds of the sale, revive $559m but due to the valuation being less than that, they received nothing.
The lawsuit also adds that the firms maintained a 40% share in the FanDuel Group as a result of the company being undervalued which at the time of being sold is claimed to have a $1.2bn valuation.
As a result of the lawsuit, the employees seeking “all proceeds obtained from any appreciation of such stock or transfers that is held by defendants resultant on the acquisition of FanDuel by Paddy Power Betfair be imposed.
Indiana Mobile Sports Betting App Approved for BetMGM
The joint venture between MGM Resorts International and GVC Holdings that BETMGM is part of with Roar Gigital has received approval to launch mobile sports betting in the state of Indiana. The State of Indiana Gaming Commission issued on the 12th of January a temporary vendor license to BetMGM for the Belterra Casino Resort resultant on it being pleased with its performance.
Executive Director of the Commission, Sara Gonso Tait, said in a statement; “BetMGM has substantially demonstrated to the satisfaction of the Commission that its mobile sports wagering operation meets the requirements of Indiana code article 4-38, the Commission’s emergency regulations and all Commission directives related to sports wagering activities.
Sara Gonso Tait added, “As such and pursuant to BetMGM’s launch date request, I hereby authorise BetMGM to commence mobile sports wagering activities within the state of Indiana on 25 February 2020.”