Amaya Inc. is facing a class-action lawsuit from a US investor, alleging the company is defrauding its shareholders by concealing insider trading conducted by its chief executive.
According to The Globe and Mail, Amaya Inc was sued on Tuesday with one of its investors from United States accusing the Canadian gambling website of defrauding its shareholders. He claimed that Amaya made a concealed insider trading that was conducted by the chief executive. Harvey Weisman, the plaintiff, has stated that Amaya should have revealed the decisions made by its Chief Executive David Baazov. Furthermore, he sues the company for failing to properly disclose deficiencies in its internal controls.
The law firm of Lieff Cabraser Heimann & Bernstein filed the action litigation in federal court against the company as reported by Card Player. It was done in behalf of the complaints made by the investors who bought stocks from June 2015 to March 2016. The charges were also brought up two days after the PokerStars, a subsidiary of Amaya, launched in the state of New Jersey.
The law firm assured that there is a possible recovery, stating "If you purchased Amaya securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than May 24, 2016. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action."
It is known that the Amaya CEO, David Baazov, is taking a leave of absence from the online company as he faces insider trading charges as written by UN News. Meanwhile, Baazov and the Montreal-based company have denied all allegations against them.
Amaya has appointed Divyesh Gadhia as their interim chairman and Rafi Ashkenazi as the acting CEO on Tuesday. They claimed the case would not have any impact on its offerings in PokerStars, the poker site which owns 70% of the worldwide online market.
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