FanDuel founders launch legal action over dodgy valuation

By: Staff Writer
- August 17, 2018
- LikeUnlikeLike
- 1727 Views
Four founders of the daily fantasy sports operator, Fanduel, have filed a legal suit at a Scottish civil court, alleging the company was undervalued during its acquisition by Paddy Power Betfair.
Bookmaker, Paddy Power Betfair completed a purchase deal of FanDuel for 465 million (£367m/€411m) in May and has since combined it with their Betfair US business. The purchase was to create a larger company with a focus on sports betting and existing FanDual’s DFS offering.
However, the former FanDuel founders, led by ex-chief executive Nigel Eccles, argued that the then valuation did not take into consideration the potential impact of the legalised sports betting regime. The others complainants are Rob Jones, Tom Griffiths, and Lesley Eccles.
According to the complainants, the Supreme Court’s repeal of the PASPA came the weeks before the deal, yet, the company’s stock valuation was not recalculated until closed. Paddy Power increased by 28% two weeks after the ruling.
Per the deal, some early investors of FanDual were guaranteed a windfall, but those holding non-preferred shares including the plaintiffs were not, which they find unfair.
“Having elected to so utilise the ‘waterfall’ provisions, the board was then required to pick a price on which to base the conversion,” the lawsuit stated.
“The board of FanDuel considered whether the US Supreme Court ruling and its impact upon the market value of FanDuel should cause the company to be revalued.
“It has chosen not to do so. The board of FanDuel elected to use the valuation obtained prior to the US Supreme Court ruling, without seeking any current and sound valuation of the company.”
A spokesperson at FanDual in an interview with Recode said the petition is “simply not rooted in facts or reality.”
“In preparation for this deal, an exhaustive process was undertaken with the anticipation of PASPA’s likely repeal,” they said
“The deal was consummated consistent with the corporate governance rules and cap table established under the former founders’ leadership.
“The facts are that this was a sound business transaction that achieved the highest valuation possible for shareholders and was the right strategic move for the company’s future.”
You may also like
Join the Betting Planet team!
Are you passionate about sports betting? Tipsters and news writers required TODAY!
Experienced preferred but not essential. (All apps considered).
View Careers at Race Media

Top Online Casinos
Latest Betting News
- UFC Fight Night betting preview & top picks – December 9, 2023
- EPL Matchweek 16 betting picks & predictions
- La Liga Matchday 16 betting picks, top odds & predictions
- Serie A Matchday 15 preview, betting picks & top odds
- Bundesliga Matchday 14 betting preview, top picks & best odds
- Song v Gutierrez betting picks & fight odds – UFC Fight Night
- Patriots @ Steelers NFL Thursday betting picks – Week 14, 2023
- EPL Matchweek 15 preview, predictions & betting picks
- Liverpool, Spurs rescue acts close out super EPL weekend
- Cincinnati Bengals at Jacksonville Jaguars NFL Monday betting picks
Casino Guides
- Safest online casino jurisdictions
- How to guides
- How to win at pokies
- How to play online pokies
- PaysafeCard online casino deposits
- MasterCard Online Casinos
- Online Casinos Accepting POLi
- 32Red Casino Review
- All Slots Casino Review
- Boombet Casino review
- Horse racing games at casinos
- Credit card deposits at online casinos
- Films about blackjack
- Live dealer casinos
- How to play live dealer blackjack party
- Online Blackjack
- Top online casinos 2023
- Online casino deposits
- MasterCard Online Casinos
- Online Casinos Accepting POLi
- PaysafeCard online casino deposits
- Online slots
- Playing Pai Gow Poker on the Internet
- Online keno
- Online poker
- Online poker tournament structures
- Real money online roulette 2022
- Online multi-wheel roulette – what is it?
- How to play online scratch cards in 2020
- Sit & Go online poker tournaments
- Skrill e-wallet deposits at online casinos
- Visa online casino deposits
Sports Betting Guides
Casino Games
Deposits & Withdrawals
Football
Basketball
Top Country Betting sites
- Angola
- Antigua and Barbuda
- Armenia
- Australia
- Azerbaijan
- Bahamas
- Barbados
- Belize
- Brazil
- Canada
- Dominican Republic
- Germany
- Ghana
- Grenada
- India
- Indonesia
- Italy
- Kenya
- Malaysia
- Malta
- Ireland
- Netherlands
- New Zealand
- Nigeria
- Norway
- Philippines
- Singapore
- South Africa
- Turkey
- Uganda
- Ukraine
- United Kingdom
- Vietnam
- Zambia
- Zimbabwe