LeoVegas executive arrested for insider trading
Swedish firm LeoVegas AB is one of the best-known online casino games on PC and mobile. But an unfortunate revelation could taint the image of the company founded in 2011 by Gustaf Hagman, its CEO, and Robin Ramm-Ericson, the current chairman of its board. Indeed, a senior LeoVegas executive has just been arrested for insider trading in connection with the acquisition of the operator by the American giant MGM…
Suspected insider trading in MGM’s acquisition of LeoVegas
According to the Swedish newspaper Aflonbladetthree people – one of whom is a senior executive of LeoVegas – were arrested by the police for suspected insider trading. The high-ranking employee is reportedly the only one of the three individuals arrested who has a direct connection to the Scandinavian online casino operator.
Indeed, in June 2022, the Swedish Economic Crime Authority launched an investigation into possible deliberate market abuse in connection with the acquisition of LeoVegas by U.S. casino giant MGM. The investigation focuses on the value of the company’s shares on the stock exchange, although LeoVegas had at the time pledged to assist the authorities in their work.
As a reminder, MGM had agreed to pay SEK 61 (€5.85) per share toacquire the entire share capital of LeoVegaswhich, according to the operator, would represent a 44% valuation over the closing price of its share on April 29, 2022. As a result of the offer, the share price of LeoVegas rose to SEK 60.30 on May 02, 2022, although it had already risen by more than 30 percent during the previous month.
” Employee is not a member of the management team or board of directors “
LeoVegas’ director of communications and public affairs, Daniel Valiollahi, confirmed the events described by Aflonbladetbut made it clear that the executive in question is not a member of the management team, let alone the board of directors. Of course, he has already been dismissed…
” It has come to our attention that an employee within the company has been notified of a criminal suspicion regarding the disclosure of inside information. LeoVegas Group takes ethical conduct and regulatory requirements very seriously, and we are committed to the highest standards of integrity and fairness. We have, and will continue to assist the authorities in their ongoing investigation “, assured Daniel Valiollahi.
The acquisition of LeoVegas was completed last September after the majority of shareholders accepted MGM’s offer. Bill Hornbuckle, chief executive and president of MGM Resorts, said the deal would allow his group to offer online gaming in Europe, and elsewhere.
