Investors to sue Entain over Headlong bribery settlement
Investors claim Entain failed to share knowledge of historic offences in Turkey.
UK.- Investors in the London-listed gambling giant Entain are to file a group claim for compensation following its settlement regarding historic bribery cases in Turkey. The law firm Fox Williams says it will seek over £100m in compensation for institutional investors.
Entain reached an agreement with the Crown Prosecution Service (CPS) in November to pay £585m in a financial penalty and disgorgement of profits in relation to the failings at a former GVC Holdings-owned subsidiary, Headlong Ltd. However, Fox Williams claims Entain failed to communicate the CPS investigation to investors. It believes Entain therefore breached Sections 90 and 90A of the Financial Services & Market Act 2000.
In a statement on its website, the law firm says: “The claim represents an opportunity for investors in Entain to recover compensation. We urge any eligible investors to participate on this basis.”
Entain’s strategic review
Last month, Entain completed a strategic review and announced that it would hold on to its core brands. However, it has defined Georgia-facing Crystalbet as non-core and will consider a possible sale after receiving interest from several parties.
The board’s Capital Allocation Committee announced the review in January to analyse Entain’s portfolio of more than 30 brands with the aim of maximising shareholder value. The move came amid some shareholder criticism of its recent strategy of acquisitions.
