- SG sets out to litigate with rogue shareholder
- Sylebra potential linked to terrorism outfits
- SG could re-sell its stocks as per corporate bylaws
SG files lawsuit in Nevada against shareholder whose identity remains not fully disclosed.
Scientific Games Litigates with Rogue Shareholder
Scientific Games, a global supplier of interactive lotteries and casino solutions, has filed a lawsuit against a shareholder in Nevada over failure to comply with information requests about suitability in the state.
The company that the lawsuit sites is one of the largest shareholders in SG, to name Hong Kong-based Sylebra Holdings, which presently holds 9.34 per cent of the company’s stock, estimated at $178 million.
As the case is presented by SG, the company has repeatedly reached out to Sylebra Holdings for information that would have allowed SG to carry out its analysis. Moreover, Sylebra has been using loopholes to avoid requests about the identities of beneficial owners through the smart use of procedural mechanisms.
The lawsuit didn’t hesitate to express SG’s own suspicions:
“This sustained pattern of obfuscation, procedural maneuvering and outright stonewalling… raises serious questions about just what Sylebra might be trying to hide.”
SG has raised another red flag by arguing that Sylebra is affiliated with a Russian company which , in turn, may be involved in a number of unsavory dealings, including funding terrorist organizations.
If Sylebra continues to withhold information, Scientific Games may suspend the company’s shares and re-sell them as part of its own corporate stature.
Sylebra Holdings’ Shade Dealings
Sylebra Holdings is not a savory character in the United States. Dozens of U.S. companies are now filing their own litigation against the company. Much of Sylebra Holdings’ assets are based in the Cayman Islands, which adds to the financial unknowns surrounding the entity.
SG has been particularly peeved at the company’s refusal to provide the necessary information particularly because regulators need it to ensure the integrity of the industry in the U.S. Here is what SG spokesperson Susan Cartwright had to say on the occasion, cited by CDC:
Scientific Games has now filed a lawsuit against Sylebra in Nevada state court asking for a ruling that Sylebra be required to provide us with the information we need to maintain the integrity and transparency our regulators expect and require of us.
The lawsuit painted the full picture of SG’s own doubts about Sylebra. It’s the assets in the Cayman Islands that have risen a suspicious eyebrow over the past four years that Sylebra has been an active shareholder in SG.
Scientific Games is now insisting to find out more about the identity of the master fund which controls Sylebra and which is the de facto owner of SG’s stock.