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FanDuel Sued by Employees Allegedly Stiffed After Merger (2)

Feb. 26, 2020, 1:27 AMUpdated: Feb. 26, 2020, 2:30 PM

More than 100 former FanDuel Inc. employees—including its five founders—sued the company Tuesday, saying they were shut out of the proceeds from a merger with European sportsbook Paddy Power Betfair Plc.

The complaint said that preferred shareholders receive the first $559 million in proceeds under the company’s Articles of Association, and that FanDuel, private equity firms Shamrock Capital Advisors LLC and KKR & Co. Inc., and others artificially devalued the company below that number to ensure that no other shareholders made money from the merger.

“As a result, Defendants walked away with shares worth billions, and Plaintiffs were left ...