The acquisition of Golden Nugget Online Gaming by the sports betting giant DraftKings is set to be investigated by Juan Monteverde of Monteverde & Associates over alleged security law violations.
The New York-based law firm, which has a focus on mergers and acquisitions, will initially look into whether the takeover was correctly valued. First announced in August, the takeover cost DraftKings a reported $1.56bn, or 0.365 shares of the sports betting operator per-Golden Nugget share owned.
Furthermore, the firm will investigate the Golden Nugget Board of Directors, studying whether securities law was breached and if the company failed to conduct a fair process.
“As a named plaintiff, you acknowledge that you owned shares in Golden Nugget Online Gaming, Inc prior to the recent takeover announcement and that you must maintain ownership in Golden Nugget Online Gaming, Inc throughout the litigation and/or closing of the transaction,” said a statement found on the law firm’s website made in the hope of getting Golden Nugget shareholders to join its latest action.
DraftKings first announced the acquisition of Golden Nugget in August of this year. The deal gave the sports betting juggernaut the ability to leverage Golden Nugget’s popular iGaming offering.
“Our acquisition of Golden Nugget Online Gaming, a brand synonymous with iGaming and entertainment, will enhance our ability to instantly reach a broader consumer base, including Golden Nugget’s loyal ‘iGaming-first’ customers,” commented Jason Robins, DraftKings’ CEO and Chairman of the Board, on the agreement.
“This deal creates meaningful synergies such as increased combined company revenues driven by additional cross-sell opportunities, loyalty integrations and tech-driven product expansion as well as technology optimization and greater marketing efficiencies. We look forward to Tilman being an active member of our Board and one of our largest shareholders.”