The popular daily fantasy sports website and app known as Fanduel has frequently been the subject of controversy. That is still true to this day. At this very moment the company which is now owned by Paddy Power Betfair is being sued for more than $100 million dollars by the founders.
How are the founders suing their own company? It is because they no longer own a stake in the brand. It was purchased entirely by Paddy Power Betfair, but the founders say that they got nothing out of the deal. The management of the company sold off the brand after the founders had already left, and those founders along with other stakeholders did not receive any proceeds from the deal. That is why they feel so passionately that they need to sue in order to set things straight once again.
The management that made the sale enriched themselves at the time to the tune of millions of dollars according to legalsportsreport.com. Even as they did so, they left the founders and the original visionaries for the company out in the rain. It was a cunning move that has now triggered a lawsuit.
Management of Fanduel used legal moves to force the minority shareholders that did hold a stake in the company to agree to the deal to sell themselves to Paddy Power Betfair. This is something else that the founders are bringing up in their lawsuit. It may or may not have been legal for management to have done that, but it sure doesn’t make them look very good that they did.
The value of Fanduel has only continued to rise post sale. Paddy Power appears to have struck a great deal for itself as the brand continues to have a significant influence in the realm of daily fantasy sports. As one of the pioneers of the industry itself, it is not surprising that the vast majority of customers use this site or rival DraftKings to do their wagering on the various games for the day. It has helped the company to build up an international reputation.
Right now, the lawsuit mentioned above has been filed in Scotland. It is awaiting a date to be set for trial. Of course, the odds are that the parties will come to some kind of settlement agreement ahead of time before this thing gets dragged out in front of an actual judge. What will happen next is something that we will all have to wait to find out.