16th Feb 2025 11:14
(Alliance News) - Entain PLC's former chair and chief executive have filed suit against the gambling firm, the Financial Times reported on Saturday.
Former chief executive Kenny Alexander and one-time non-executive chair Lee Feldman are suing the Ladbrokes owner, as well as law firm Addleshaw Goddard, the FT reported, citing court records.
AG had advised Entain on a prosecution deal related to the gambling firm's former Turkish unit, the FT noted.
In 2023, Entain agreed a GBP585 million settlement with HM Revenue & Customs to resolve an investigation into alleged bribery at its former Turkish business. Additionally, the company made a charitable donation of GBP20 million and paid GBP10 million towards costs.
Alexander and Feldman have claimed that AG may have disclosed privileged information without prior consent, the FT reported. The duo are after a court declaration which states they were clients of AG. This would mean advice AG gave to Entain should be made available to them.
Entain on Tuesday had said Gavin Isaacs has stepped down as chief executive officer with immediate effect, after only around five months in the role. Isaacs, who started on September 2, departed "by mutual agreement".
Non-Executive Chair Stella David once again assumes the role of interim CEO, a post she held from December 2023 until September 2024.
Pierre Bouchut, currently senior independent director, will become non-executive chair on an interim basis.
Previous CEO Jette Nygaard-Andersen resigned at the end of December 2023 after the company was hit with the penalty in relation to its former Turkish firm.
Entain shares plunged 11% on Tuesday, but did make a 0.9% gain for the week, helped by a 7.5% surge on Friday.
According to a regulatory filing on Friday, hedge fund Corvex Management LP has snapped up a 5.3% stake in the gambling firm.
By Eric Cunha, Alliance News news editor
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