DraftKings $1.56 Billion Worth Acquisition of Golden Nugget “Unfair,” Says Suit
A new class action lawsuit alleges that the proposed $1.56 billion acquisition of Golden Nugget Online Gaming by DraftKings is “unfair” to shareholders and conducted without proper monitoring.
Peter Wong v. Golden Nugget Online Gaming, Inc. and DraftKings
According to the lead plaintiff, Peter Wong, the sale is a disservice to shareholders, and that a federal court in New York should block the deal.
Wong, in the DraftKings’ Golden Nugget Acquisition Class Action Lawsuit, asserts that the sale is misleading and omits facts.
Golden Nugget and DraftKings are nearing the completion of an all-stock transaction that will provide DraftKings with access to Golden Nugget’s five million customers and enable them to reduce their reliance on third-party platforms.
Golden Nugget’s gaming technology will also be integrated into the DraftKings platform as part of the acquisition.
Wong’s argument rests on his claim that the acquisition should require approval by a majority of the minority investors, commonly referred to as a majority of the minority provision.
Sale Done Without Proper Oversight
Additionally, Wong asserts that the sale was rushed without proper oversight by an independent commission and that the sale price was questionable.
Clearly, the DraftKings’ Golden Nugget Acquisition Class Action Lawsuit claims the company is expected to achieve enormous future success and should deserve a far higher consideration than the Proposed Transaction’s amount.
Additionally, the lawsuit argues that Golden Nugget and DraftKings failed to give investors detailed future financial projections, making it difficult for investors to determine the companies’ current worth.
Wong contends that the companies’ actions are in violation of the Securities and Exchange Act of 1934; the plaintiff is seeking a jury trial.
Editor’s Note on DraftKings’ Golden Nugget Acquisition Class Action Lawsuit:
This article is written to inform you of a suit alleging that the proposed acquisition of Golden Nugget Online Gaming over to DraftKings is “unfair.” Another lawsuit was also filed against DraftKings over Winning Bets.
Case Name & No.: Peter Wong v. Golden Nugget Online Gaming, Inc., et al., Case No. 1:21-cv-09331
Jurisdiction: U.S. District Court for the Southern District of New York
Allegations: Golden Nugget and DraftKings allegedly violated the Securities and Exchange Act of 1934
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