Entain’s troubles with its historic business in Turkey aren’t over yet. Although the gambling giant has reached a deferred prosecution agreement (DPA) with the Crown Prosecution Service (CPS), the entire process has taken a toll on the company’s shares. Needless to say, investors are not happy.
A group of institutional investors have decided to sue Entain over the decline in its share price following a bribery investigation. Despite the settlement, the company’s past misdeeds in Turkey have continued to haunt it, causing its share price to fall significantly.
For context, Entain’s share price has fallen 44% since 2023. While the decline is not entirely due to the issues surrounding the investigation and is also the result of some riskier business moves, investors are still concerned.
Law firm Fox Williams has confirmed that it has filed a claim in the London High Court, in line with its previous statement. The lawsuit was brought on behalf of 20 investors who collectively demanded more than £150 million.
Entain confirmed last month that it was aware of the claims, but had not formally received them. The company also confirmed its intention to fight back. To that end, Slaughter and May will help Entain defend the case.
The entities behind the lawsuit are not yet publicly known, although sources have told the Financial Times that they are mostly firms based in the United States, with some in the United Kingdom and elsewhere. Additionally, according to the report, the group of investors suing Entain includes state pension funds and asset managers.
