Why Caesars Entertainment (CZR) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of Caesars Entertainment  (CZR) are dropping -9.57% to $12.70 following two lawsuits.

First, its noteholders are suing the company for allegedly fraudulently transferring assets. 

The noteholders said in their lawsuit that they believe billions of dollars of assets were transferred out of CEOC, or Caesars Entertainment Operating Company, to put the properties out of reach of creditors in preparation for a default on some of its $25 billion in debt, Reuters reports.

Secondly, the casino company filed a lawsuit against its investors today, claiming they were seeking a default to turn a profit, Reuters added.

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Caesars Entertainment claims certain institutional investors attempted to thwart its restructuring efforts through actions apparently designed to push CEOC into default.

Separately, TheStreet Ratings team rates CAESARS ENTERTAINMENT CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate CAESARS ENTERTAINMENT CORP (CZR) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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