DraftKings, Golden Nugget Merger Plan Draws Investor Suit (1)

DraftKings Inc. and Golden Nugget Online Gaming Inc.'s proposed merger is “unfair” and a registration statement filed in support of the deal lacks important information, an investor in the latter says in federal court in New York.

The planned $1.56 billion deal is a “foregone conclusion” because Golden Nugget’s CEO owns about 79.9% of its outstanding stock, there’s “no ‘majority-of-the-minority’ provision,” and the registration statement indicates the CEO “already tendered the requisite approval necessary” for things to move forward, according to a complaint filed in the U.S. District Court for the Southern District of New York.

The Golden Nugget board ...