It’s been a tough few months for DraftKings. Over this short period the daily fantasy sports giant has seen 70% of its value wiped off the stock price at one point, although to be fair this has been an ongoing trend since peaking early 2021.
The stock reached a high of $71.98 on March 19, 2021 and bottomed out at $19.46 on January 21, 2022 before rebounding slightly to $23.33.
Suspected WrongdoingNot a great time for DraftKings to say the least and now it looks as if even more trouble could be on the horizon. The pending $1.56 billion takeover of Golden Nugget Online Gaming has seen a pair of lawsuits filed over unfair pricing for affected shareholders and manipulation by the GNOG CEO.
Golden Nugget chairman and CEO Tilman Fertitta is accused of agreeing to takeover terms that benefited him personally and undervalued the stock price for shareholders.
Steven Eschbach and Anthony Franchi, shareholders of Golden Nugget Online Gaming, filed a joint suit in the Delaware Court of Chancery while Carl Grove, another shareholder, is pursuing the matter on his own.
Lawyers working for the trio have now requested multiple documents and other information to check for themselves if any wrongdoing has taken place. The DraftKings CEO even publicly called the sale price as “a steal”.
Carl Grove’s lawsuit states that there is a conflict of interest as unique benefits from the deal would not be available to all shareholders.
For now, though, experts are still hyping up DraftKings as a great investment for 2022, predicting that the price could as much as double over the year. Cash and equivalents reported by the company in September 2021 amounted to $2.4 billion, giving the firm plenty of leeway to navigate through this difficult period.