The Securities and Exchange Commission announced that it is investigating the poker star\’s unsolicited $700 million offer to buy the World Poker Tour operator, claiming it violated anti-fraud laws.
News of the takeover bid in July sent WPT\’s stock price up almost 50 per cent in one day to $29.50 per share.
Then, the price rapidly fell after the company said it was not able to obtain additional information from Brunson or his attorneys. The offer later expired.
The lawyers who represented Brunson in his offer declined to testify in the investigation, forcing the SEC to file an enforcement action with a Texas Federal District Court to compel them to provide documents on critical aspects of the offer which have been withhold under the attorney-client privilege.