UK law firm Fox Williams is launching a group claim against Entain plc on behalf of investors in Autumn of 2024.
The claim is in relation to historical bribery offences following an investigation into the company’s Turkish operations by His Majesty’s Revenue and Customs (“HMRC”). As a direct result of the investigation, Entain’s shares suffered a fall in value.
At the time of the investigation, Entain announced that it had agreed a £585 million settlement after it was found to have failed to implement measures to prevent bribery in its Turkish subsidiary, Headlong. The Turkish business had since been sold previously by Entain’s former management GVC.
Entain said at the time that it had agreed a deal with the Crown Prosecution Service (CPS) to pay the figure over four years while paying £20 million to charity and £10 million to cover the costs of HMRC and the CPS.
When the deferred prosecution agreement (DPA) was approved, Entain’s shares fell by more than 40%, from 1,375p to 777p.
Although Fox Williams’ call to join the group claim on its website does not mention specifics of the amount sought, reports in Law.com cite someone with knowledge of the matter revealing that investors are seeking £150 million.
The firm states that according to Sections 90 and 90A Financial Services & Markets Act 2000 (England & Wales), investors are entitled to seek compensation if they have suffered a loss as a result of a misleading statement or dishonest omission in published information.
According to court listings, UK firm Slaughter and May is acting on behalf of Entain. The company has yet to respond to the reports of the group action.
Entain Reports Stronger than Expected Q2 Results
Entain reported an 8% increase in net gaming revenue (NGR) on a constant currency basis, reaching £2.6 billion in H1 2024, including its 50% share of BetMGM.
Group EBITDA for the half-year came to £524m, up by 5% compared to H1 2023.
Entain’s loss after tax dropped to £47m, compared to £502.5m in the prior-year period.
Following stronger-than-expected Q2 results, Entain has updated its full-year 2024 EBITDA forecast to a range of £1.04 billion to £1.09 billion, revising its earlier estimate, which projected a £40 million reduction from last year’s £1.01 billion.
Based in London, Natasha is a former sports journalist with experience working for some of the biggest athletes & brands in the world of sports and iGaming.
Entain, a major gambling company, is currently facing a £150 million lawsuit from investors following a corruption settlement. The lawsuit stems from allegations of bribery and corruption within the company, which ultimately led to a hefty settlement with the authorities.
The controversy surrounding Entain began when it was revealed that the company had engaged in unethical practices in order to secure lucrative contracts and business deals. This included paying bribes to government officials and other key stakeholders in order to gain a competitive advantage in the industry.
As a result of these revelations, Entain was forced to settle with the authorities and pay a substantial fine. However, this was not enough to appease investors who had seen the value of their shares plummet as a result of the scandal.
In response to the lawsuit, Entain has stated that it is committed to addressing the concerns of its investors and ensuring that such misconduct does not happen again in the future. The company has also implemented new measures to improve transparency and accountability within its operations.
The lawsuit serves as a stark reminder of the importance of ethical business practices and the potential consequences of engaging in corrupt behavior. It also highlights the need for companies to take proactive steps to prevent such issues from arising in the first place.
Overall, the situation facing Entain serves as a cautionary tale for other companies in the industry, emphasizing the importance of maintaining integrity and ethical standards in order to protect both their reputation and their bottom line.
