The plaintiffs allege that Entain and Addleshaw Goddard unlawfully disclosed sensitive information during an investigation into the bribery scandal surrounding the company’s Turkish operations
Ex-Entain CEO Kenneth Alexander and former chairman Lee Feldman have filed a legal claim against the gambling giant and its long-standing legal adviser Addleshaw Goddard (AG) for alleged unauthorized disclosure of confidential information during a £615 million ($775 million) deferred prosecution agreement (DPA) regarding historic bribery failings. This case follows similar legal action against the UK gambling regulator.
Entain Allegedly Disclosed Sensitive Materials
According to a recent Financial Times report, this newest lawsuit, filed in London’s High Court, seeks direct access to information shared with prosecutors, arguing that Entain and AG may have waived joint privilege without the plaintiffs’ consent. Alexander and Feldman contend that as former senior executives, they were joint customers of AG, which advised Entain before and during the DPA negotiations.
Alexander and Feldman allege that Entain and AG should have shared any legal advice regarding the operator’s former Turkish operations, which were at the epicenter of a high-profile bribery probe. They add that joint privilege could not be waived without their explicit consent, demanding the complete list of legal papers exposed as part of the criminal investigation and DPA settlement.
The claimants understand that the company and/or AG may have disclosed, in the course of the investigation and/or in the course of the DPA or otherwise, privileged materials.
Alexander and Feldman claim
Entain has dismissed these accusations, noting that the claims have no merits. The company intends to defend its position in court. The legal challenge coincides with the ongoing leadership drama at the company as CEO Gavin Isaacs abruptly stepped down, causing share prices to plunge by 11%. While Interim CEO Stella David picked up the reins, the ongoing uncertainty adds to investor concerns.
Alexander and Feldman Also Took Aim at the UKGC
Entain’s £615 million DPA agreement with the UK Crown Prosecution Service (CPS) was one of the largest corporate settlements in British history. It revolved around an HMRC investigation into Entain’s former business in Turkey several years ago. Although the Turkish operations were sold in 2017, allegations against it claimed it operated in the country’s grey sector.
Alexander and Feldman have also taken the UK Gambling Commission to court, alleging the regulator improperly made public personal information about them during the Turkish bribery case investigations. They argue that the regulator’s actions caused “unquantifiable financial and reputational damage” and are seeking over £50,000 ($63,000) in damages and an injunction to prevent future disclosures.
This newest lawsuit marks another legal complication for Entain as the company faces investigations in Australia for alleged anti-money laundering (AML) breaches. As the CPS deliberates on criminal charges and Australian regulators ramp up their scrutiny, the company faces mounting legal and regulatory challenges. The ongoing leadership woes add to these risks, presenting substantial short and medium-term challenges for Entain.
