Penn Entertainment has accused activist investor HG Vora Capital Management of spreading “false claims and mischaracterisations” in a 116-page investor presentation issued last week, intensifying a months-long proxy battle ahead of its 17 June annual meeting.
In a letter to shareholders dated 27 May, Penn said the presentation misrepresented facts about the company’s governance and strategic direction.
Penn stated it had entered talks in good faith but could not agree to HG Vora’s demands, which it claimed were incompatible with gaming regulator directives.
“Notwithstanding this impasse,” the letter read, “HG Vora was successful in achieving changes to Penn’s board composition,” noting that two HG Vora-backed nominees — Johnny Hartnett and Carlos Ruisanchez — are expected to be elected at the company’s upcoming annual meeting. The two would represent 25% of the board.
Penn said it had released an addendum to its earlier fact sheet in order “to set the record straight”, and accused HG Vora of repeatedly disregarding gaming industry compliance rules in pursuit of control over the company.
“Penn’s gaming licences are our most valuable assets — we understand and take our regulatory obligations seriously and, over our 30-year history in the industry, Penn has earned a reputation of trust with our regulators and the communities in which we operate,” the board wrote.
“HG Vora, on the other hand, has consistently disregarded the gaming regulatory regime in its...
The nonprofit is accused of causing a third-party lab to submit excessive drug tests for reimbursement between July 2018 and June 2021, officials said. PORTLAND, Maine — The Opportunity Alliance ha...