Having agreed to pay one of the largest financial penalties ever imposed in the UK, Entain, the owners of Ladbrokes and Coral, is now facing considerable legal action with shareholders seeking more than £100 million in compensation, for failing to update them on issues with bribery and corruption according to The Guardian.
Activities at the group’s former Turkish operation led to a deal finalized at the end of 2023 with the UK HM Revenue and Customs after a lengthy investigation.
Now, the action by legal firm Fox Williams seeks damages for shareholders who have seen shares in the company, formerly known as GVC nearly halve since May 2023.
Andrew Hill, head of the securities litigation team and a partner at Fox Williams, said: “This claim will offer institutional investors the opportunity to recover substantial losses but more importantly serve to improve transparency and governance within the UK’s gambling sector, reminding public companies that they need to take their disclosure obligations seriously.
“Hopefully this will therefore have the knock-on effect of improving corporate behavior because public companies should know that their shareholders won’t let them get away with misconduct.”
A spokesperson for Entain meanwhile responded to The Guardian by saying, “We are currently unaware of any action of this kind against the company, and have not received an issued claim. We would defend any such action robustly.”
The original HRMC investigation into Entain started in 2019 and was based around “potential corporate offending” at a Turkish subsidiary between 2011 and 2017 and was accused of “failing to have the correct procedures in place to stop people taking part in bribes that benefit the business.
On top of the fine Entain agreed to make a charitable donation of £20m and to pay a contribution of £10m to the costs of the case.
Featured Image: Entain
