Category
🥇
SportsTranscript
00:00Finally, let's wrap it up with Penn Entertainment having a hard time, of course, financially with ESPN Bet.
00:06The numbers aren't necessarily where they thought they would be.
00:09What is this lawsuit that they're facing now?
00:12Yeah, one of Penn's largest investors is now suing the company, which is the latest development after it launched a proxy fight,
00:18which is tied to ESPN Bet and its widely publicized struggles where it just really has not been able to gain any foothold in online sports betting competition.
00:30Despite the millions and millions of dollars they've spent on this, the investment firm is called HG Vora,
00:36and they filed this lawsuit in court, basically accusing Penn of violating federal security laws,
00:42allegedly lying to the SEC and breaching its fiduciary duties to its shareholders.
00:47The company is trying to nominate new members to Penn's board.
00:52It says Penn has been kind of disingenuous in doing that.
00:55They had a meeting earlier this month. It said Penn went back on its word.
00:58They're calling it a board reduction scheme.
01:01So it's kind of the latest in a big, messy, messy, messy situation for Penn,
01:06which, again, has struggled with online sports betting and now has this proxy fight on their hands.
01:10They just reported earnings. Numbers weren't great.
01:13So it's going to be another rough couple of months ahead going for Penn.
01:18They're going to hope that ESPN Bet turns around.
01:20But meantime, they have all this on their plate, and it's very worrisome.
01:24Let's go then.
01:27Let's go.
01:28Let's go.
01:30Let me go ahead.
01:31Let's go ahead.