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 ...
