HG Vora initiates a lawsuit against PENN regarding shareholder rights.

Summary

• HG Vora is once again targeting PENN Entertainment.
• The conflict arises from the exclusion of a candidate for the Board of Directors.
• HG Vora alleges that PENN is restricting shareholders' rights for its own benefit.

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Activist investor HG Vora, a vocal critic of PENN Entertainment and its management practices, has filed a lawsuit against the company.

HG Vora is back up arms against PENN’s top management

After what seemed like a reconciliation between the two parties, HG Vora has resumed its offensive stance, accusing PENN of not supporting

This democratic approach allows shareholders to propose and nominate candidates for the company's Board of Directors, thereby influencing the company's overall direction. In a lawsuit filed with the US District Court for the Eastern District of Pennsylvania, HG Vora claims that PENN prevented the shareholder from appointing three members to its Board of Directors. the firm stated. HG Vora has been critical of the company’s management, questioning its payment practices and the results of current operations, which have repeatedly shown PENN falling short on key performance metrics with the ESPN Bet brand. The activist investor argues that PENN violated its fiduciary duties by reducing the number of board candidates from three to two. Specifically, HG Vora wanted William J. Clifford to join the Board, but this was denied. Despite this, PENN proceeded with appointing Johnny Hartnett, former CEO of Superbet, and Carlos Ruisanchez, CEO of Sorelle Capital, as board members.

Shareholder democracy compromised, self-serving interests suspected

HG Vora has further allegations, claiming that PENN violated federal securities laws by making false and misleading statements and omissions in proxy materials. The activist investor contends that when PENN announced the appointments of Ruisanchez and Harnett to the Board, they misleadingly suggested that HG Vora had agreed to this decision. However, HG Vora argues this is inaccurate, especially since Clifford is conspicuously absent. HG Vora accuses PENN of acting out of self-interest without any legitimate cause.

stated the activist investor.