Eldorado Resorts Inc. disclosed in a Sept. 3 regulatory filing that a number of its executives had received a subpoena from the U.S. SEC relating to the trading of shares in an unnamed publicly traded company.
The Eldorado executives who received a subpoena were CEO Tom Reeg, Chairman Gary Carano, President and COO Anthony Carano, and board member James Hawkins.
According to the New York Post, the unnamed company involved is Florida-based medical-device maker IRadimed Corp. The filing said Hawkins had been a member of the unnamed company's board, and Hawkins was the former chairman of IRadimed's board of directors.
IRadimed did not immediately respond to S&P Global Market Intelligence's request for comment.
Caesars Entertainment Corp., which is preparing for a merger with Eldorado, was informed about the development in June. Eldorado also informed Caesars representatives that the executives being investigated had not been notified of any allegation of wrongdoing.
The casino operators agreed to change the composition of the board when the companies complete the merger. Reeg and Carano will no longer be the board of the combined company, according to the filing.
The boards of directors of both Eldorado and Caesars recommend that shareholders vote in favor of the proposed merger.
