Investment firm HG Vora Capital Management has filed a lawsuit against Penn Entertainment, accusing the company of violating federal securities laws and breaching its fiduciary duties after it reduced the number of board seats up for election from three to two ahead of its 2025 annual meeting.
The suit, filed Monday in the U.S. District Court for the Eastern District of Pennsylvania, seeks declaratory and injunctive relief to invalidate what HG Vora calls Penn’s “Board Reduction Scheme.” The firm argues that the move was an illegitimate attempt to sideline shareholder influence during a contested election.
The dispute comes as Penn faces pressure over its underperforming ESPN Bet sports betting platform, a key flashpoint in HG Vora’s push for boardroom change.
