Nigel Eccles, a co-founder and former FanDuel CEO, filed a lawsuit challenging the terms of the sportsbook sale to Paddy Power Betfair (PPB). Eccles sought $465 million on behalf of himself and other principals, according to SBC Americas. The suit originated in Scottish courts.
A panel of five judges in New York State appeals court concluded Eccles vs Shamrock Capital Advisors did not make a valid claim as proscribed by Scottish law.
Eccles accused Shamrock of suppressing FanDuel’s financial worth to punish the co-founders. Flutter, now FanDuel’s parent, invested $600 million to merge with Betfair TVG and opened a U.S. sportsbook division.
The original deal saw PPB take a controlling 61 percent stake in FanDuel for $158 million, a transaction that was approved by the operator’s venture capital investors. Flutter has defended its 2018 valuation of FanDuel, as the company made a $600 million investment to merge FanDuel.
“This is a sweeping victory for our client, which confirms that the transaction was fundamentally fair, and the proceeds were appropriately distributed,” attorney Mark Kirsch told reporters.
