Amaya Faces Class Action Suit After Charges Against CEOLitigation Comes Days After Baazov Takes Leave Of Absence |
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Roughly a week after insider trading charges were announced against Amaya CEO David Baazov, a prominent law firm announced a class action suit against the company.
According to a press release, the law firm of Lieff Cabraser Heimann & Bernstein, LLP has filed class action litigation in federal court in New York against the company on behalf of investors who bought stock between June 8, 2015 and Mar. 22, 2016.
The charges against Amaya’s now-former CEO, president and board chairman came just two days after PokerStars, a subsidiary of Amaya, launched in the U.S. state of New Jersey.
The law firm added that you don’t have to go through them if you want to seek possible recovery: "If you purchased Amaya securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than May 24, 2016. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
On Tuesday, Amaya announced that Baazov took a voluntary leave of absence but will remain on the board of directors. Amaya said that the move was so that he could “focus on preparing an offer to acquire Amaya and to avoid a distraction for the company while he responds to certain allegations made against him by the Autorité des marchés financiers (AMF), the securities regulatory authority in Quebec.” It was known before the charges that Baazov, already a significant shareholder, had an interest in taking the company private.
The investigation, which began in 2014, was into Amaya’s $4.9 billion takeover of PokerStars and Full Tilt, a deal that made it one of the largest online gaming companies in the world.
Baazov denies all the allegations, and Amaya said the case will have no impact on its offerings on PokerStars, a poker site with roughly 70 percent of the worldwide market.
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