(Alliance News) - Investors in gambling firm Entain PLC could seek more than GBP100 million in compensation over bribery and corruption issues at the Ladbrokes owner's former Turkish business.

Law firm Fox Williams said it is proposing a large group litigation claim against Entain for alleged "failure to report honestly" on these issues.

It comes after Isle of Man-based Entain, which also owns the Coral brand, agreed with HM Revenue & Customs to pay GBP585 million in penalties and disgorgement of profits following a probe.

HMRC had been probing Entain over activities at the Turkish-facing business that it sold in 2017.

Authorities started investigating the suppliers in 2019, and a year later turned their gaze on the GVC Group, which subsequently rebranded to Entain.

The company was alleged to not have adequate procedures in place to prevent bribery.

On Wednesday, Fox Williams said investors suffered financial losses following the probe and associated penalties.

Andrew Hill, partner & head of the securities litigation team at Fox Williams, said: "This claim will offer institutional investors the opportunity to recover substantial losses but more importantly serve to improve transparency and governance within the UK's gambling sector, reminding public companies that they need to take their disclosure obligations seriously.

"Hopefully this will therefore have the knock-on effect of improving corporate behaviour, because public companies should know that their shareholders won't let them get away with misconduct."

A spokesman for Entain said: "Entain is not aware of any issued claim of this kind against the company.

"We would defend any such action robustly."

Entain shares were 0.2% higher at 690.80 pence each on Wednesday afternoon in London.

By Henry Saker-Clark, PA Deputy Business Editor

Press Association: Finance

source: PA

Copyright 2024 Alliance News Ltd. All Rights Reserved.