Miami Police Pension Fund Challenges Standard General’s Bally’s Takeover

Miami Police Pension Fund Intends to Sue Over Bally’s Deal

The Miami Police Pension and Relief Fund is preparing to file a lawsuit against the hedge fund Standard General regarding its 2024 acquisition of Bally’s Corporation, a major player in the casino and hospitality sector. The fund claims the takeover was conducted unfairly, disadvantaging certain stakeholders.

Background: From Initial Offer to Controversial Acquisition

Initially, Standard General proposed purchasing Bally’s in 2022, offering $38 per share. However, that deal fell through. In 2024, the hedge fund returned with a significantly lower offer of $15 per share, which was later raised to $18.25 after negotiations. Bally’s ultimately accepted this $4.6 million deal, closing the acquisition earlier this year.

A legal filing has described Bally’s chairman, Soo Kim, as a “hedge fund vulture,” accusing him of colluding with Standard General to orchestrate a business arrangement that severely undervalued Bally’s and harmed minority shareholders.

Accusations Involving Additional Investors

The Miami Police Pension and Relief Fund has implicated other key investors in the alleged conspiracy. Among them are Sinclair Broadcasting, a current Bally’s investor, and Noel Hayden, founder of Gamesys, which Bally’s acquired in 2021. Together with Standard General and Soo Kim, these investors controlled 53% of Bally’s fully diluted shares.

The fund claims these investors agreed to reinvest their equity alongside Standard General, enabling the transaction to proceed despite initial funding challenges. It is also alleged that Soo Kim manipulated Bally’s revolving credit facility to depress the company’s valuation.

Moreover, members of the special committee responsible for evaluating the takeover offer allegedly had close connections to Soo Kim and were pressured to support the acquisition.