Investors to Claim Compensation from Entain for Financial Losses
Entain, the global sports betting and gaming company, is facing group litigation from investors seeking £100 million in compensation for financial losses following a bribery and corruption probe into its business dealings in Turkey.
Investors seek legal action against Entain for financial losses.
LISTEN TO THIS ARTICLE:The legal action will be brought for compensation following bribery and corruption issues that relate to the group’s business operations in Turkey prior to their sale in 2017.
HM Revenue & Customs (HMRC), the financial regulatory authority in the UK, started an investigation into the operations throughout the group. The result of the investigation led to Entain agreeing with HMRC to pay a penalty fine of £585 million, for failings in its business regulations.
Fox Williams, the Law firm representing the investors, says that any possible legal action will also serve to improve the regulatory framework within the gambling industry within globally regulated markets.
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,l therefor,e have the knock-on effect of improving corporate behavio, because public companies should know that their shareholders won’t let them get away with misconduct.
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Allegations That Procedures at Entain Were Inadequate
One of the key issues that investors believe led to investors suffering financial losses is that at Entain. There was a "failure to report honestly" about the issues surrounding the probe into Turkish operations.
During the investigation conducted by the HMRC, they outlined that the gaming operator did not have sufficient or adequate procedures in place to prevent bribery or corruption in the company. The law firm is arguing that failure to implement these procedures directly led to the massive fine levied against Entain.
Entain is not aware of any issued claim of this kind against the company. We would defend any such action robustly.
The company is constantly reviewing the strategy of the business and Entain is contemplating selling Crystal Bet.
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