Penn National Gaming faces potential class action amid shareholder losses
Penn National Gaming is facing an investigation from the Schall Law Firm regarding alleged violations of securities law.
The casino and racetrack operator has been confronted with claims from the California-based law firm, on behalf of shareholders, concerning “misleading” statements and/or its failure to provide investors with important information.
On Thursday 4 November, Penn National reported a net income of $0.52 per share on $1.5bn in revenue for the third quarter of 2021. This figure fell far short of expectations, with Penn having reported $0.93 per share for the equivalent period last year. As a result, shares of the company experienced a marked drop.
After missing its Wall Street consensus earnings estimate, the company’s shares took a 21% tumble by market close on 4 November, taking many investors by surprise.
“The investigation focuses on whether the company issued false and/or misleading statements and/or failed to disclose information pertinent to investors,” stated Schall.
“Penn National announced its financial results for the third quarter of 2021 on November 4, 2021. The company reported net income of $0.52 per share, which fell far short of the $0.93 per share for the same quarter of the prior year.”
“Based on this news, shares of Penn National fell sharply on the same day.”
Subsequently, many shareholders suffered a loss, leading Schall, which specialises in securities law and shareholder rights, to call on any investors who did to get in touch.
While this case has not yet been certified — as reiterated by Schall — it could lead to a class-action lawsuit if the firm’s preliminary investigation yields adequate grounds.
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