Entain: Investor group £150m lawsuit filed against gambling giant and Ladbrokes owner
London-listed betting and sports gaming company Entain has been hit with legal action over alleged bribery at a former Turkish subsidiary.
Entain made headlines back in November after it signed a deferred prosecution agreement (DPA) with the Crown Prosecution Service (CPS), who were working with the HMRC.
It was the first non-Serious Fraud Office DPA conducted, which saw the gambling giant agreeing to a £585m fine.
The probe into Entain by HMRC followed activities at a Turkish-facing business that it sold in 2017.
However, following news of the DPA, the company’s shares fell down in value.
Law firm Fox Williams issued a call to action in June, stating that it was preparing to file a group claim against Entain, and asked for institutional investors to join the group action.
The claim period for English investors was mapped out as 1 July 2011 to 31 December 2023.
Led by securities litigation partners Andrew Hill and Matthew Reach, the lawyers stated that it would file a group action behalf of institutional investors by Autumn 2024.
Despite that, the claim came earlier. According to the High Court system, the firm filed the group claim to the Financial List of the High Court on 2 August. The firm has 20 institutional investors currently on the claim, and is currently speaking to others that may join.
The claim is being taken under the Financial Services and Markets Act 2000, and the firm stated that the claim is worth more than £150m.
The system also lists that Entain has instructed magic circle law firm Slaughter and May to defend it in these legal proceedings.
Commenting on the claim, Hill said: “We’re pleased that we have successfully filed this claim on behalf of institutional investors. This action demonstrates that investors are seriously committed to ESG and will hold companies accountable when acting irresponsibly.”
Entain has been approached for comment.