Ex-bosses sue Entain over alleged disclosure of privileged info

February 17, 2025

Ex-bosses sue Entain over alleged disclosure of privileged info

Former top executives of Ladbrokes Coral parent Entain plc have sued the company and its law firm in a London court over the alleged sharing of privileged legal advice during the negotiations of a deferred prosecution agreement (DPA) with regard to its legacy Turkish arm.

What is this lawsuit about?

Kenny Alexander, the former Chief Executive Officer (CEO), and ex-chairman Feldman of the FTSE 100 company, have launched a lawsuit against Entain and its law firm, Addleshaw Goddard (AG), alleging that privileged legal advice was improperly shared during the negotiations of a £615 million DPA at its Turkish arm, according to court records obtained by the Financial Times.

It says the DPA was designed to resolve a bribery investigation into Entain’s former Turkish operations. Alexander and Feldman claim that Entain and AG may have disclosed privileged information to the prosecutors without obtaining their consent. The duo is seeking a court order that would enable them to see information shared with the investigators.

Mounting regulatory pressure

In parallel to internal disputes, Entain is also under scrutiny from international regulators. Australia’s financial crimes watchdog, AUSTRAC, has initiated legal action against the company, accusing it of breaches in anti-money laundering protocols. The regulator alleges that Entain failed to perform adequate customer identity verifications and maintain robust risk management processes. This failure could result in substantial financial penalties and further regulatory intervention.

Leadership turmoil

Further compounding these challenges is the abrupt exit of CEO Gavin Isaacs, whose departure after a brief five-month tenure has added fuel to the fire. Isaacs’ exit has sparked concern among stakeholders, as the company did not provide any reason for the same. Industry observers suggest that Isaacs’ short stint, marked by escalating legal and regulatory pressures, hint at deeper strategic missteps and operational vulnerabilities within the company.

Interim CEO Stella David now faces the formidable task of steering Entain through these turbulent waters. Her mandate includes stabilising the leadership transition, addressing the mounting legal battles, and reassuring regulators and investors alike.

“Entain considers the claim to be without merit, and it will contest it robustly,” the company said in response to a media query.

Even as Entain’s stock price fell over 10 percent last week following Gavin Isaac’s sudden departure, it has been on a recovery path in the following days. Industry experts will be watching the company closely in the coming months as things unfold.