"Dozens Of Former Employees Plan To Sue Bowlero Alleging Discrimination After EEOC Closes Case, Lawyer Says" - CNBC
Portfolio Pulse from Benzinga Newsdesk
Dozens of former Bowlero employees plan to sue the company for age discrimination and retaliation after the EEOC closed its investigation without filing a lawsuit. The EEOC had been investigating Bowlero since 2016, finding reasonable cause in 58 complaints but ultimately decided not to sue. Bowlero, which denies the allegations, has been informed it's not cleared of wrongdoing. The company, having gone public in 2021 and tripling its revenue from 2021 to 2023, considers the EEOC's decision a positive development. The claimants' lawyer intends to file a lawsuit seeking $80 million plus legal fees. Bowlero's stock is down about 21% year to date.
May 07, 2024 | 12:22 am
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NEGATIVE IMPACT
Bowlero faces a potential lawsuit from former employees for age discrimination and retaliation, seeking $80 million plus legal fees, after the EEOC closed its case. The company denies the allegations but the stock is already down 21% YTD.
The lawsuit represents a significant legal challenge and potential financial liability for Bowlero, especially given the EEOC's findings of reasonable cause in 58 complaints. The public nature of these allegations and the lawsuit could further impact investor sentiment and Bowlero's stock price, which has already seen a significant decline YTD. The company's denial of the allegations and the closure of the EEOC investigation without a lawsuit might mitigate some negative impact, but the initiation of a private lawsuit seeking substantial damages keeps the issue relevant and potentially damaging.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100