Activist Investor Continues Hammering Penn Entertainment For More Board Seats

HG Vora Capital intensified its fight against Penn Entertainment (PENN), saying that it has sought an injunction from the court to force Penn to count votes for its third director nominee at the company's annual general meeting and not before it.

The gist of the ongoing tussle: HG Vora Capital nominated people for three vacant seats on Penn's board, which is set for election. Last month, Penn shrank the board to seven seats from eight.

Over the past weeks, HG Vora, which owns a 5% stake in Penn, has launched a string of attacks on Penn and called the move unacceptable.

“HG Vora has nominated a highly qualified third independent director candidate in William Clifford and is now fighting in court for injunctive relief to have all votes for him counted at the Annual Meeting," the investor said in a statement on Monday.

"Accordingly, HG Vora filed a motion on May 14, 2025, for expedited relief and a rapid trial in federal court in Pennsylvania, which PENN is opposing."

While Penn has said it will back the other two nominees from HG Vora, the investor has questioned whether the company will follow through.

HG Vora, among other issues, claims that the company has lost its value due to an ill-considered push towards online gambling and sports betting.

Penn wasted about $4 billion attempting to enter the online sports betting industry, which led to erosion in shareholder value, HG Vora has alleged.

Penn shares are down 87% from their all-time high in 2021.

On Stocktwits, the retail sentiment increased to 'neutral' from 'bearish' the previous day.

Penn has scheduled its AGM on June 17. Its stock fell 3.5% on Monday and is down 22% year to date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on