A lawsuit brought against the company by one of the founders of FanDuel fell short in a New York appeals court.
The New York-based lawsuit followed a case brought in Scotland that failed to provide the relief Nigel Eccleswas seeking and ultimately was abandoned by the plaintiffs. Eccles’s efforts in New York State Court would, however, also prove fruitless as the defendants prevailed Thursday in the Appellate Division. The decision reverses an earlier ruling from the trial court, where Judge Andrea Masley allowed three of five causes of action to survive the defendants’ motions to dismiss.
Eccles, one of the founders of FanDuel, filed suit in 2020 against a variety of defendants, including FanDuel itself and former CEO Matt King, alleging that the 2018 merger with Paddy Power Betfair saw FanDuel’s acquisition price suppressed so that Eccles, other early investors, and more than 100 former employees were not able to capitalize on the deal because it did not exceed the stipulated price at which the plaintiffs were eligible for compensation.
What was FanDuel lawsuit by Eccles about?
As LSR reported in February 2020 when the complaint was filed, Eccles and more than 100 former employees sued FanDuel, a number of executives, and companies who helped merge the company Eccles co-founded with Paddy Power Betfair.