Miami Police Fund Launches Urgent Lawsuit Against Standard General
BREAKING NEWS: The Miami Police Pension and Relief Fund has just announced plans to sue American hedge fund Standard General over its controversial takeover of Bally’s Corporation, raising serious questions about the fairness of the deal. This urgent legal action highlights significant allegations of coercion and unfair practices that could have far-reaching implications for investors and stakeholders.
According to reports from Casino.org, the lawsuit centers around the hedge fund’s acquisition bid for Bally’s in 2024, which many believe disadvantageously impacted multiple stakeholders. In an unexpected turn, Standard General initially proposed a robust offer of $38 per share in 2022, but after the deal failed, it returned in 2024 with a drastically lower offer of just $15 per share. After some negotiations, the hedge fund raised its proposal to $18.25 per share, ultimately leading to a $4.6 million deal that closed earlier this year.
The Miami Police Pension and Relief Fund’s legal documents do not hold back, labeling Bally’s chair, Soo Kim, as a “hedge fund vulture.” The fund accuses him of colluding with Standard General to create a “coercive deal structure” that substantially undervalued Bally’s and harmed minority shareholders. This characterization paints a troubling picture of the motivations behind the acquisition.
In a further twist, the lawsuit alleges that other prominent investors, including Sinclair Broadcasting and Noel Hayden, founder of Gamesys, played critical roles in facilitating the deal. Together with Standard General and Kim, these investors controlled 53% of Bally’s fully diluted shares, raising concerns about potential collusion to undermine the value of the company.
The Miami Police Pension and Relief Fund claims that these investors agreed to “roll over their equity along with Standard General,” allowing the hedge fund to proceed with the deal despite previously lacking sufficient funds. Furthermore, the fund alleges that Kim exploited Bally’s revolving credit facility to further undervalue the company, raising even more alarm about the integrity of the acquisition process.
As the lawsuit unfolds, all eyes will be on how this legal battle influences the future of Bally’s Corporation and impacts its stakeholders. With the stakes high and investor confidence on the line, the implications of this case could reverberate throughout the casino and hospitality industry.
WHAT’S NEXT? Expect to see developments in the coming days as the Miami Police Pension and Relief Fund gears up for a significant legal fight against Standard General. The outcome of this lawsuit could redefine investor relationships and governance practices within the industry, making it crucial for stakeholders to stay tuned for updates.
This urgent case not only raises questions about fairness in corporate takeovers but also shines a light on the delicate balance of power between hedge funds and investors. As this story develops, it is sure to attract widespread attention from industry experts and investors alike. Share this story to keep others informed about these pivotal developments.
