Dave Portnoy, the founder of Barstool Sports, the giant in which Penn National Gaming is planning to increase its stocks, has filed a lawsuit against several Insider employees and Insider itself as he claims that his privacy was violated and he was defamed over articles in which women were accusing him of sexual assault and misconduct.
Portnoy Warned Insider Last Week
This lawsuit does not come as a big surprise, considering the fact that Portnoy threatened Insider that he will file a lawsuit last week.
According to the lawsuit, the articles were “clickbait journalism” and it states that the Insider employees had malicious intent. Moreover, it said that it exposed the alleged wrongdoings by Portnoy without explanation.
It also elaborated that the publishing date of the articles coincides with the Penn National announcements on quarterly earnings. Furthermore, it explains how these articles are a way of Insider causing the downfall of one of the most popular “entrepreneurs and media personalities” in the Massachusetts area.
The lawsuit challenged the alleged sexual assault on the three women in question and the alleged violent rape, which labeled these claims as a massive fabrication.
Insider Plans to Lawyer up and Form a Defense
Nicholas Carlson (editor), Melkorka Licea (reporter), Julia Black (reporter) and Henry Blodget (CEO of Insider) are among the defendants in the case. Casino.org reached out to Insider to comment on the current developments and the company’s spokesman, Mario Ruiz stated that Insider stands firmly in its reporting and will “defend the case vigorously.”
Carlson published an editor’s note last week in which he said that when multiple allegations are collected against someone as famous and as influential as Portnoy, the pattern of behavior becomes newsworthy.
Howard Cooper, a Todd & Weld lawyer and the key attorney that represents Portnoy, was also contacted but declined to give any comment.
As for Portnoy, he published a few blogs last week in which he said that someone has to take a stand and say “enough is enough.” He also warned that no amount that Insider plans to settle on will take him off and that he will not stop until the people who damaged his reputation are put out of business.
Penn National’s Stocks Fell When the Articles Were Published
Penn National acquired a 36% stake in Barstool Sports in January 2020 for a price of $163 million. After the allegations against Portnoy were brought to light, the company’s stock fell by 21%. That drop equated to a market value loss of $2.5 billion.
In November, the Q3 earnings were published on a Thursday morning. The stocks of Penn National on Wednesday were just south of $72.23 and after the allegations were published by Insider, they dropped to $65.57.