Investors to Take Entain to Court over Declining Share Price

Entain’s troubles related to its historic business in Turkey are not over yet. While the gambling giant did reach a deferred prosecution agreement (DPA) with the Crown Prosecution Service (CPS), the whole process took a toll on the company’s shares. Needless to say, investors aren’t happy.

Investors Take Entain to Court

A group of institutional investors has decided to take Entain to court over the decline in its share price following the bribery investigation. Despite the settlement, the company’s past offenses in Turkey continued to haunt it, causing a significant slump in its share price.

Entain’s share price, for context, has plummeted by 44% from 2023. While the decline isn’t entirely attributable to the investigation-related trouble and is also the result of several riskier business moves, investors remain uneasy.

Law firm Fox Williams confirmed that it has filed a claim at the London High Court, in line with its earlier announcement. The suit was filed on behalf of 20 investors who collectively demanded over £150 million.

Last month, Entain confirmed that it is aware of the claims but had not been formally served with them. The company also confirmed its intention to fight back. To that end, Slaughter and May will assist Entain in defending the case.

The entities behind the lawsuit are not publicly known yet, although sources told the Financial Times that they are mostly firms based in the United States, as well as some in the UK and other countries. The investor group suing Entain, furthermore, includes public pension funds and asset managers, according to the report.

Entain Is Set to Welcome Its New CEO

In other news, Entain’s newly-appointed chief executive officer, Gavin Isaacs, just announced its readiness to step down from Galaxy Gaming’s board in preparation for his tenure at Entain. This move will ensure that he is able to provide the British operator with his undivided attention.

For context, Isaacs joined Galaxy Gaming in 2019 and has steered the company towards success ever since. However, he acknowledged the challenging nature of his new appointment at Entain and decided to step down from the position at Galaxy Gaming.

Isaacs is set to step into the office on September 2, assuming responsibility for Entain and its recovery in the wake of the DPA.