Fox Williams, a business advisory firm and securities litigant, announced that it is preparing to file a group claim against gambling giant Entain on behalf of institutional investors.
Led by securities litigation partners Andrew Hill and Matthew Reach, the firm is set to accuse the operator of failing to disclose its knowledge of bribery and corruption in Turkey to its investors.
Fox Williams alleges that Entain was aware of the regulatory violations involving Headlong Limited but did not impart its knowledge of the matter to the investors, violating section 7 of the UK Bribery Act 2010.
For context, Headlong was responsible for Entain’s (then GVC Holdings’) operations in Turkey from 2011 to 2017. The subsidiary was eventually sold to Ropso Malta Limited.
Fox Williams’ claim arises from Entain’s failure to report honestly (or at all) to investors regarding its knowledge of (among other wrongdoing) bribery and corruption in Turkey involving Headlong Limited (an Entain subsidiary during the period 2011 to December 2017) and in breach of section 7 of the UK Bribery Act 2010.
Fox Williams statement
Fox Williams added that its claim represents an opportunity for Entain’s investors to recover compensation. The firm urged eligible investors to participate.
A Lawsuit Would Add to Entain’s Woes
Fox Williams’ announcement comes several months after Entain negotiated a Deferred Prosecution Agreement (DPA) with the UK’s Crown Prosecution Service (CPS) in connection with the bribery offenses. The case took its toll on Entain’s shares.
The High Court eventually approved the DPA with Entain agreeing to pay a financial penalty plus disgorgement of profits totalling £585 million. In addition, the company was required to make a charitable donation of £20 million and contribute £10 million to the costs of HMRC and the CPS.
In other news, Entain recently concluded its strategic review and decided that Crystalbet, Entain’s Georgia-facing brand, is non-core to the group. As a result, Entain will consider strategic alternatives for the business.