Shareholders of Golden Nugget Online Gaming Inc. first filed lawsuits in September 2022 against controlling stockholder Tilman J. Fertitta and others, alleging that various side deals related to the $1.56 billion merger benefited Fertitta at the expense of the company and other shareholders. These shareholders also argued that the sale price was too low, prompting litigation in multiple jurisdictions, including New York and Nevada.
Settlement Terms and Attorney Remarks
The $22 million settlement — a 3% premium to the transaction price — will be paid in cash without insurance money. Kimberly A. Evans of Block & Leviton described the settlement as a “strong risk-adjusted outcome” for a “very challenging case.”
Winning the case “would not have been simple,” Evans noted, explaining that details of the side agreements were often unclear and, after extensive analysis, were sometimes found to be neutral rather than beneficial to Fertitta.
“We had to hunt to find out how those side agreements were arranged,” Evans said.
