The New House of York Supreme Court today ruled in favour of FanDuel, dismissing a $1 1000000000 suit of clothes brought past founders of the gaming accompany who argued they were non adequately remunerated when the sportsbook manipulator was acquired past Paddy Power Betfair inwards 2018.
FanDuel founders Nigel and Leslie Eccles and Norman Thomas Griffiths and 134 ahead of time microscope stage employees were among the plaintiffs inward the case. They claimed that the private equity firms KKR and Shamrock Capital pressured conflicted gameboard members of the daily fantasy sports (DFS) companion to take a $559 1000000 takeover bid from Mick Power Betfair. That deal enriched KKR and Shamrock piece essentially leaving unwashed equity investors come out inward the cold.
In 2018, a Scots courtyard tossed a fit brought past FanDuel founders attempting to stopover the sales event of the company to Ireland-based Mick Power. Eccles and his dude founders would later sue KKR and Shamrock for $120 million, claiming those entities received preferential treatment non afforded to plebeian equity investors. The plaintiffs wanted Scotch law applied in the New House of York case, but courtroom ruled against that effort.
As to the merits, plaintiffs make failed to province a arrogate for breach of fiducial responsibility below Scots law, as Scots jurisprudence states that directors in the main owe fiduciary duties only if to their company, not to its shareholders. While a theatre director may owe a fiduciary responsibility to a shareholder in special circumstances, such circumstances are non submit here,” according to the ruling.
FanDuel is at present the largest online sportsbook operator inward the US and is 95% owned by Flutter Entertainment. Boyd Gaming controls the other 5%.
‘Sweeping Victory’ for FanDuel
Today, FanDuel holds dominant market apportion inward the fast-growing US online sports wagering market place — nearly as often as its next closest competitors — BetMGM and DraftKings — combined. The fellowship is also I of the biggest operators of internet casinos inwards the US and late reported the first of all profitable billet US online sports betting incorporated history.
All of that is to say the gaming keep company is living upward to the potentiality its founders envisioned — possible they debate wasn’t reflected inward offer terms for the company. As such, inwards the suit they claimed breach of fiducial obligation past the acquirers, but the New House of York Supreme Court didn’t concur.
Rather, the court of law states inwards its ruling “the do of process alleging aiding and abetting a breach of fiduciary nonetheless fails because thither is no underlying breach of fiducial duty.”
“This is a wholesale triumph for our client which confirms that the dealings was fundamentally reasonable and the proceeds were appropriately distributed,” said Mark Kirsch, a partner at Riley B King & Spalding, who is representing FanDuel and its plank of directors.
Matthew Biben, another partner at that unwaveringly and longtime counsel to the gaming company, also represented the operator inward this case.
What’s Next
It remains to be seen if the plaintiffs have grounds for an charm or will endeavor another organise of litigation.
As for FanDuel, parent fellowship Flutter is stock-still in the thick of arbitrament with Charles James Fox Corp. regarding pricing for the media giant’s rights to win 18.6% of the gaming operator.
There’s some prospect that rift could live resolved inwards the coming months, potentially scope the present for Flutter to spinoff a portion FanDuel to public investors.