Penn Entertainment blasts HG Vora “false claims”

Penn Entertainment has issued a formal statement, slamming activist investor HG Vora Capital Management and accusing it of spreading “false claims and mischaracterisations”. 

The ongoing saga was directly addressed in a letter issued to shareholders on 27 May, ahead of the firm’s AGM on 17 June.

That recent communication from Penn was in direct response to a 116-page investor presentation, in which HG Vora outlined its issues with the company. 

HG Vora has been damning of the strategic decisions made, especially Penn’s investment in online gaming. The group argues that almost $4 billion has been wasted trying to break into the online sports betting market, most recently through its operation of the ESPN Bet website. 

There have been accusations made on executive compensation, insider stock sales, and corporate jet usage, but all of this has been dismissed by the entertainment and gaming operator as misleading and incorrect.

HG Vora also asserts that the direction of the company has resulted in shares being significantly undervalued, pouring further scorn on executive remuneration, which it described as “excessive”, given the underlying performance metrics.

As reported by Next, Penn Entertainment detailed in the shareholders’ letter that it simply could not agree to the demands of HG Vora, due to incompatibility with the directives of gaming regulators. 

Despite this, the shareholder group was successful in securing changes to the Penn board, with two of its backed nominees – Johnny Hartnett and Carlos Ruisanchez – expected to take seats at the table at the June annual meeting. 

The incoming duo will make up 25% of the board personnel.

Penn Entertainment says HG Vora presentation full of “false claims”