Ademi LLP is investigating Golden Nugget Online Gaming (Nasdaq: GNOG) for possible breaches of fiduciary duty and other violations of law in its transaction with DraftKings.
Ademi LLP alleges Golden Nugget Online Gaming’s financial outlook and prospects are excellent and yet Golden Nugget Online Gaming shareholders will receive only a fixed ratio of 0.365 shares of New DraftKings’ Class A Common Stock for each Common Share of Golden Nugget Online Gaming. The merger agreement unreasonably limits competing bids for Golden Nugget Online Gaming by prohibiting solicitation of further bids, and imposing a substantial penalty if Golden Nugget Online Gaming accepts a superior bid. Golden Nugget Online Gaming insiders will receive millions of dollars as part of change of control arrangements. We are investigating the conduct of Golden Nugget Online Gaming’s board of directors, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for Golden Nugget Online Gaming.