Chancery OKs $22M Golden Nugget Deal

Chancery OKs $22M Golden Nugget Deal

Former stockholders of Golden Nugget Online Gaming Inc. received approval Tuesday to settle their Delaware Chancery Court class action for $22 million in cash. This settlement follows the May 2022 $1.56 billion all-stock sale of Golden Nugget to DraftKings Inc. Of the settlement, $4 million will go to class attorneys.

Legal Team Fees and Adjustments

Nearly 20 attorneys from several firms, including Block & Leviton LLP, Friedman Oster & Tejtel PLLC, Labaton Keller Sucharow LLP, Grant & Eisenhofer PA, Andrews & Springer LLC, Kaskela Law LLC, and Julie & Holleman LLP, will split the attorney fee and expense award. This award includes a $5,000 incentive fee for lead shareholder Steven Eschbach.

Vice Chancellor J. Travis Laster reduced the attorney fee award slightly from the initial $4.62 million requested. “I ultimately can’t get comfortable with the $4.62 million given what was done,” said Laster, who opted for a $4 million flat fee instead.

Chancery OKs $22M Golden Nugget Deal : Litigation Background

Under Delaware law, settlements at an “early stage” of litigation typically result in lower attorney fee awards. This lawsuit, consolidated in October 2022 and certified as a class action in October 2023, survived a motion to dismiss but settled well before trial.