Entain Faces New Investor Lawsuit Amid Ongoing Legal Woes

Entain, the global betting powerhouse behind brands like Ladbrokes and Coral, is facing fresh legal pressure from a group of major institutional investors. 

Financial Market-Related Claim, “at a Very Early Stage”

The claim, recently filed with London’s High Court, is being led by U.S. law firm Morgan, Lewis & Bockius and involves firms such as Brown Brothers Harriman Trustee Services, State Street Bank and Trust Company, Northern Trust Company, and The Reliance Trust Company, acting as trustees for large investment funds.

The legal action was registered on the Financial List, which is a part of the High Court that deals with complex financial cases. 

The claim relates to financial market matters, although specific details remain under wraps for now.

A spokesperson for Entain acknowledged the claim in a statement to City AM, saying Entain was “aware of this claim but has not yet been formally served with it” and explaining the matter was “at a very early stage.”

The spokesperson added that the company that was recently accused of neglecting money laundering red flags in Australia “intends to defend any proceedings robustly”.

Not Its First Rodeo

This latest lawsuit follows another group claim initiated by Fox Williams in August 2024. That case was brought after Entain’s share price dropped significantly in the wake of its settlement with UK tax authorities. 

The fall came as the Crown Prosecution Service announced a deferred prosecution agreement (DPA) with Entain over alleged historical misconduct related to its now-sold Turkish business.

The agreement was linked to bribery investigations covering the period from July 2011 to December 2017. 

Although Entain exited its Turkish operations in 2017, the aftermath proved costly. The DPA required Entain to pay out a total of £615 million, including £585 million ($777 million) in penalties and profit disgorgement, £20 million ($26 million) to charitable causes, and £10 million ($13 million) to cover HMRC’s legal fees.

The controversy also sparked internal legal friction. At the start of the year, former chief executive officer Kenny Alexander and ex-chairman Lee Feldman took legal action against Entain and its legal advisers, Addleshaw Goddard, to uncover what was shared with prosecutors during the investigation.

Amid the legal chaos, Entain is also going through leadership changes. At the end of last month, Stella David was officially appointed as the group’s permanent CEO, replacing Gavin Isaacs, who served less than six months in the role. 

David, having twice held the interim post, is now tasked with steadying the ship and delivering long-term growth.Despite the mounting legal issues, Entain’s latest financial results in March showed a 12% rise in annual profit, helped by strong online performance and a rebound in its UK and Irish operations.