Former CEO of FanDuel sues Paddy Power Betfair

One of the co-founders of FanDuel presented in Scotland a lawsuit against Paddy Power Betfair.

Scotland.- FanDuel began a legal battle in the UK against operators of local sports betting leading company, Paddy Power Betfair. According to statements released yesterday afternoon, the US daily fantasy sports operators have filed a lawsuit against Paddy Power Betfair in Scotland. The lawsuit seeks a compensation of US$120 million.

The lawsuit states that Paddy Power Betfair “purposely undervalued” FanDuel’s enterprise value during its US$465 million takeover transaction, as explained by the international media. The lawsuit was filed with a Scottish court yesterday by Nigel Eccles, one of the co-founders of FanDuel and it states it represents the interests of the company’s founding team: Nigel Eccles (former CEO), wife Lesley Eccles (former CMO), Tom Griffiths (former CPO) and Rob Jones (corporate advisor).

“The decision of the board (whose interests are aligned with preference shareholders), not to seek and act upon a new market valuation in the face of a material event, which is likely to have significantly increased the market valuation of FanDuel, is a breach of its fiduciary duties,” reads Eccles petition.

Meanwhile, the most successful sports betting operator during July, the first month of the segment’s operations in the US, has been FanDuel, which topped sportsbooks as it posted about a third of all revenue in New Jersey.