FanDuel Employees, Founders Sue Over Getting Nothing in Merger

Elvera Bartels

Former employees and founders of on the net athletics betting firm FanDuel are suing Shamrock Capital Advisors and KKR & Co. alleging they colluded to undervalue the company’s shares just before a merger with Paddy Power Betfair in 2018.

The plaintiffs involve much more than a hundred previous employees, cofounder and previous chief govt officer Nigel Eccles, and cofounders Lesley Eccles, Tom Griffiths, and Chris Stafford. The team alleges that the non-public equity corporations and buyers picked a price tag for the firm in its merger with Paddy Power that would not exceed $559 million.

Under the conditions of their investment, the non-public equity corporations and late-phase buyers ended up entitled to the 1st $559 million of proceeds from a takeover, whilst common shareholders ended up entitled to almost everything higher than that total, like a 40% share of the recently made FanDuel Group.

“Put only these buyers and the

Read More