Executives, co-founders, investors, and employees of FanDuel are alleging that they were undervalued by board members influenced by private investors during a deal with Paddy Power in 2018. At that time, FanDuel had an estimated valuation of $559 million when it merged with Paddy Power, which later rebranding to Flutter Entertainment. Currently, FanDuel's value has soared to over $20 billion, establishing itself as a leader in the U.S. betting market.
The plaintiffs include FanDuel co-founders Nigel Eccles, Leslie Eccles, Robath Jones, Thomas Griffiths, and Chris Stafford. They allege that the defendants ensured they and other preferred shareholders retained 100% of FanDuel’s shares in the newly formed company, along with the substantial profits associated with it. Nigel Eccles acknowledged that the legal struggle will be challenging, yet he feels reassured by the backing of at least 100 individuals who contributed to creating FanDuel. Ultimately, he aims for the lawsuit to recover what they believe was unjustly taken from them in 2018.
It's worth noting that the legal dispute between FanDuel’s co-founders and various shareholders, including Shamrock and KKR, has been ongoing for several years. The lawsuit was first filed in Scotland before returning to the U.S. Earlier this year, the New York Court of Appeals allowed the case to proceed, and new appeals have now been submitted for consideration in U.S. court.
