The New York-based M&A firm has launched an investigation focusing on whether GNOG and its Board of Directors violated securities law and/or breached its fiduciary duties by failing to conduct a fair process.
Moreover, Monteverde will investigate whether the transaction is properly valued. Under the terms of the acquisition agreement, GNOG shareholders will receive 0.365 shares of DraftKings per share they own.
When it was announced in August, the all-stock transaction was valued at approximately $1.56bn as DraftKings sought to combine its sports betting know-how with Golden Nugget’s online casino expertise.
The merger is set to be a lucrative opportunity for both parties, with GNOG Chairman and CEO Tilman Fertitta calling it an “unbeatable partnership” that “can offer value to our combined customer base that is unparalleled.” However, Monteverde’s investigation could throw a spanner into the works should it lead to a class-action lawsuit.
On Monteverde’s website, the statement announcing its investigation was accompanied by a form for Golden Nugget shareholders to join its latest action. It stated: “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.”
DraftKings is also dogged by legal action from Colossus Bets, which occured just prior to this latest news. The London-based betting business alleges that DraftKings infringed its intellectual property rights.
