But the plaintiffs believe the board messed up and should have demanded much more from Flutter for FanDuel, which would have allowed the ordinary shareholders to get paid.<\/p>\n
The $465 million valuation of FanDuel was made prior to SCOTUS rejection of the sports betting ban. But the sale went through after the court had delivered its judgment, which means it should have increased dramatically, the plaintiffs have argued.<\/p>\n
Both DraftKings and FanDuel are clear leaders in the New Jersey sports betting market, the only ones in the US to have full-scale mobile wagering, largely thanks to existing brand recognition and pre-existing player databases from their DFS market dominance.<\/p>\n
\u201cHaving elected to so utilize the \u2018waterfall\u2019 provisions, the board was then required to pick a price on which to base the conversion,\u201d read the original filing. \u201cThe board of FanDuel considered whether the US Supreme Court ruling and its impact upon the market value of FanDuel should cause the company to be revalued. It has chosen not to do so.<\/p>\n
The board of FanDuel elected to use the valuation obtained prior to the US Supreme Court ruling, without seeking any current and sound valuation of the company,\u201d it continued.<\/p><\/blockquote>\n
\u201cThe decision of the board (whose interests are aligned with preference shareholders) not to seek and act upon a new market valuation in the face of a material event, which is likely to have significantly increased the market valuation of FanDuel, is a breach of its fiduciary duties,\u201d it added.<\/p>\n
King said that it was \u201cpossible\u201d that the case would be successful. But since the company did not consider it \u201cprobable,\u201d no accrual had been recorded in the balance sheet.<\/p>\n","protected":false},"excerpt":{"rendered":"
Former CEO of FanDuel Nigel Eccles and three of its other co-founders are about to renew legal action against their former company after its $465 million buyout in 2018 by Flutter Entertainment didn\u2019t yield them a bean. The founders initially filed suit against FanDuel last year in a court in Edinburgh, Scotland, where the company […]<\/p>\n","protected":false},"author":36,"featured_media":112355,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14007,1074],"tags":[],"acf":[],"yoast_head":"\n
FanDuel Founders Renew Lawsuit Against Flutter Entertainment<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n