4 years ago, I led a group of 100 former employees and founders of
@fanduel in a case of breach of fiduciary duty against FanDuel’s former board members (including investors KKR and Shamrock). Three months ago, the NY Court of Appeals found in our favor. The Court concluded that board members had indeed owed a fiduciary duty to shareholders. On Friday, we lodged an expanded complaint that, for the first time, publicly details the defendants’ various breaches of these duties, as well as outlines the defendants’ fraud, conspiracy and bribery under Scots law.
A very brief summary: In 2018, FanDuel merged with the US arm of Flutter Entertainment to create a new company called FanDuel Group. In exchange, FanDuel shareholders received 40% of the equity in the new company. However, the board (which was controlled by private equity investors KKR and Shamrock) used a phony valuation of $559M to wipe out common shareholders (largely the founders and employees). Less than 2 years later, those same investors sold that 40% stake in FanDuel Group for $4.2B.
Standing up against the likes of KKR is not easy, but I’m determined that the team of 100 amazing people who spent years building FanDuel from the ground up will get back what was stolen from them in 2018. Link to the full complaint in the reply below.