12 June 2024 , 14:09
439
0
Investors in gambling giant Entain, are seeking over £100million in compensation, citing bribery and corruption issues at the entity formerly governing Ladbrokes' Turkish operations.
Legal firm, Fox Williams, announced intentions to lodge a substantial group litigation claim against Entain. The cause is alleged "failure to report honestly" on these issues. The development follows Entain - the owner of the Coral brand - agreeing to pay up £585million in punishments and disgorgement of profits subsequent to a probe by HM Revenue & Customs.
HMRC had been probing Entain over activities at the Turkish-facing business that it sold in 2017. Regulatory bodies commenced their analysis of suppliers in 2019 and, a year on, shifted focus onto GVC Group - which would later undergo rebranding as Entain.
Entain was accused of falling short on implementing suitable procedures to deter bribery. Fox Williams emphasised on Wednesday that investors found themselves at a financial loss following the investigation and correlating penalties.
Fox Williams' partner and head of the securities litigation team, Andrew Hill 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."
Self-employed Brits have just weeks left to submit tax return or risk £100 fine
"Hopefully this will therefore have the knock-on effect of improving corporate behaviour, because public companies should know that their shareholders won't let them get away with misconduct."
A spokesman for Entain stated: "Entain is not aware of any issued claim of this kind against the company. We would defend any such action robustly."