Shareholders Frustrated as GAN Faces Class-Action Lawsuit

Shareholder, Zappia, is leading a class-action lawsuit against the company, accusing them of misleading investors. The lawsuit is filed ahead of a shareholder meeting to discuss the acquisition of GAN’s divisions by Sega Sammy for $107.6 million.

Zappia claims that the negotiations for the acquisition resulted in a reduced offer from $2.51 per share to $1.97, emphasizing the changing nature of GAN’s business and the departure of WynnBet from key markets. The lawsuit requests access to documents detailing the negotiations leading to the proposed deal.

Furthermore, the lawsuit raises concerns about the lack of clarity regarding the Financing Special Committee and the Merger Special Committee, alleging conflicts of interest of board members with the proposed transactions.

On the other hand, GAN has denied any wrongdoing, stating that all proceedings regarding the suggested merger were conducted in line with due process, according to a filing with the SEC. The lawsuit, Zappia v. Gan ltd., was filed in January with the United States District Court for the Southern District of New York. The defendants named in the case are Seamus McGill, Michael Smurfit, David Goldberg, Susan Bracey, and Eric Green.

The lawsuit and the impending shareholder meeting have put the company in the spotlight, with investors eagerly anticipating the outcome. The outcome of the lawsuit and the shareholder meeting will have significant implications for the future of GAN and its business operations.