Latest Vora Presentation Challenged as Riddled with Untruths by Penn
May 27, 2025 - 10:28h (updated at 03:04h)
Penn Entertainment (NASDAQ: PENN) issued a rebuttal to HG Vora's May 21 presentation, contesting the hedge fund's accusations concerning executive compensation and excessive use of private jets. The gaming company claims Vora's claims are not substantiated by the facts available in their public disclosure.
In its presentation titled "Genuine Change Is Needed at PENN," the activist investor criticized the regional casino firm for overpaying CEO Jay Snowden, allowing him and other executives to use private jets for personal reasons, while the stock price languished.
Vora's presentation states that these executive perks signal a culture of entitlement and detachment from shareholders. With the company's interactive segment losing money and returns down, this behavior raises serious questions, according to the presentation.
Penn contends that these claims are attempts to generate attention. The hedge fund is seeking to secure three seats on the Penn board during the gaming company's annual meeting on June 17.
The operator said in a statement, "We understand that claims of management enriching themselves with excessive compensation, personal use of corporate aircraft, or timely insider selling are attention-grabbing headlines; however, HG Vora's claims are simply not based on the facts readily available in our public disclosure."
Controversy over Board Seats
The legal dispute between HG Vora and Penn Entertainment revolves around board elections and governance issues. HG Vora has filed a lawsuit against Penn, alleging the company is violating Pennsylvania's Business Corporation Law and federal securities laws by reducing the number of board seats up for election from three to two. The hedge fund claims this move is intended to reinstall a previously ousted position and add a director without shareholder consent.
Implications for Penn Entertainment
The legal battle has led to a drop in Penn Entertainment's stock price, reflecting investor concerns over governance issues. The dispute is centered on the upcoming annual meeting on June 17, 2025, where governance decisions will be made.
The conflict does not involve issues related to executive compensation or the use of private jets, as previously reported, but solely concerned corporate governance and shareholder rights related to board composition.
[1] Saraska, L. (2025, May 24). HG Vora seeks expedited trial in Penn Entertainment lawsuit. Yahoo Finance. https://finance.yahoo.com/news/hg-vora-seeks-expedited-trial-penn-entertainment-lawsuit-143400067.html
[2] Hirsch, J. (2025, May 20). Why Hedge Fund HG Vora Wants More Control at Penn National. Barron's. https://www.barrons.com/articles/hg-vora-penn-national-gaming-company-hedge-fund-stock-51631832854
[3] Penn National Gaming Faces Activist Shareholder Threat Over Board, StrictlyNN.com. (2025, May 19). https://strictlynn.com/penn-national-gaming-faces-activist-shareholder-threat-over-board/
[4] Cooper, D. (2025, May 14). Activist Hedgies Eye Board Seats at Penn National. The Wall Street Journal. https://www.wsj.com/articles/activist-investors-eye-board-seats-at-penn-national-11684305859
- The financial implication of the legal dispute between HG Vora and Penn Entertainment is causing a drop in Penn Entertainment's stock price, as investors express concerns over governance issues.
- Despite misconceptions, the controversy between HG Vora and Penn Entertainment primarily focuses on corporate governance and shareholder rights related to board composition, rather than executive compensation or the use of private jets.
- In an effort to gain more influence within Penn Entertainment, HG Vora is seeking to secure three seats on the gaming company's board during the annual meeting on June 17, with the goal of making changes to the company's governance structure.
