SG takes legal action against HK headquartered shareholder

Scientific Games is taking legal action against one of its shareholders after it repeatedly refused to comply for requests for information and disclosure submissions used to determine suitability by gaming regulatory bodies, according to information from CDC Gaming Reports

In a lawsuit filed on Friday in Las Vegas, Scientific Games said that Sylebra Holdings, a firm headquartered in Hong Kong, has refused numerous requests for information that is required to conduct a suitability analysis under Scientific Games’ corporate bylaws.

It also said that the company has been found by investigators to have a significant stake in a Russian company with alleged ties to illegal gaming, money laundering and financial support of terrorist organizations.

Sylebra owns more than 8.6 million shares in Scientific Games, which is a 9.34 percent stake in the company, valued at more than $177.8 million.

Scientific Games said it has attempted to regularly provide what information it can about Sylebra to gaming regulators.

Under these bylaws, Scientific Games can declare Sylebra a “disqualified holder” force a redemption or sale of these shares.

“Scientific Games has now filed a lawsuit against Sylebra in Nevada state court asking for a ruling that Sylebra be required to provide us with the information we need to maintain the integrity and transparency our regulators expect and require of us,” said Scientific Games spokesperson Susan Cartwright.

“Scientific Games takes very seriously our obligation to maintain the highest standard of integrity and transparency with our regulators in Nevada, across the United States and around the world,” Cartwright said. “As part of these efforts, we must be assured of the suitability of our major investors,” she added.