Investors seeking around £100m payout from gambling firm Entain

12 June 2024, 13:44

Coronavirus � Tue Jun 9, 2020
Coronavirus � Tue Jun 9, 2020. Picture: PA

Law firm Fox Williams said it is proposing a large group litigation claim against Entain linked to issues in its former Turkish business.

Investors in gambling giant Entain could seek more than £100 million in compensation over bribery and corruption issues at the Ladbrokes owner’s former Turkish business.

Law firm Fox Williams said it is proposing a large group litigation claim against Entain for alleged “failure to report honestly” on these issues.

It comes after Entain, which also owns the Coral brand, agreed with HM Revenue & Customs to pay £585 million in penalties and disgorgement of profits following a probe.

HMRC had been probing Entain over activities at the Turkish-facing business that it sold in 2017.

Authorities started investigating the suppliers in 2019, and a year later turned their gaze on the GVC Group, which subsequently rebranded to Entain.

The company was alleged to not have adequate procedures in place to prevent bribery.

On Wednesday, Fox Williams said investors suffered financial losses following the probe and associated penalties.

Andrew Hill, partner and head of the securities litigation team at Fox Williams, 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.

“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 said: “Entain is not aware of any issued claim of this kind against the company.

“We would defend any such action robustly.”

By Press Association