Home Investors seeking £100m payout from Ladbrokes and Coral owner Entain as shares halve

Investors seeking £100m payout from Ladbrokes and Coral owner Entain as shares halve

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

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Paul McNally
Gaming Editor

Paul McNally has been around consoles and computers since his parents bought him a Mattel Intellivision in 1980. He has been a prominent games journalist since the 1990s, spending over a decade as editor of popular print-based video games and computer magazines, including a market-leading PlayStation title published by IDG Media. Having spent time as Head of Communications at a professional sports club and working for high-profile charities such as the National Literacy Trust, he returned as Managing Editor in charge of large US-based technology websites in 2020. Paul has written high-end gaming content for GamePro, Official Australian PlayStation Magazine,…

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.