GVC shrugs off class action threat
Disputed JV with Canadian marketing firm takes new twist with customers encouraged to reclaim losses
GVC Holdings is playing down the threat of a potential class action lawsuit being filed against the company as its protracted dispute with Canadian marketing firm 37 Entertainment (37E) rumbles on.
Litigation specialist law firm Findlay McCarthy yesterday revealed it had been retained to determine whether it should seek reimbursement on behalf of all Canadian residents who had placed bets with GVC brand Sportingbet and affiliated sites from 2005 to 2015.
GVC was last year alleged to have reneged on a joint-venture agreement with 37E, which led to the marketing company filing a request for arbitration with the International Chamber of Commerce in London in pursuit of a multi-million dollar sum in lost earnings.
The operator strenuously denied any formal agreement with 37E was ever struck and CEO Kenny Alexander previously called 37E’s claims “spurious” and “without substance”.
However, Findlay McCarthy said it was now considering using GVC’s argument against it, stating the operator would have been violation of Canadian law in allowing 37E, and partner Barry Alter, access to customer data and control over its Canadian business without the necessary contracts in place.
“Findlay McCarthy will be inquiring into allegations that GVC did not inform Canadian residents who had registered with Sportingbet or its affiliated sites that it would be allowing another company [??¦] daily access to, and control over, confidential customer information without putting in place lawful privacy protection measures,” a statement from the law firm read.
“GVC has maintained throughout this process that these allegations are spurious and unfounded,” GVC responded in a statement this morning. “GVC has no doubt in its ability defend itself if they choose to pursue them,” it added.
News of the potential class action law suit comes ahead Monday’s publication of GVC’s first set of results since its acquisition of bwin.party in February.
Yesterday analyst Cenkos Securities rated GVC as a ‘buy’, describing the firm as one of the most underrated stocks in the online gaming industry.
GVC’s share price was this morning down 7p to 525.5p.