The bitter six-year battle between Wynn Resorts and co-founder Kazuo Okada appears to be over after the casino operator withdrew its claim of breach of fiduciary responsibility on Monday.
According to Nevada court records, Wynn Resorts has officially dropped all claims against Okada ahead of their upcoming court case in April, with the judge in the matter agreeing to dismiss just days after the company also reached a US$2.4 million settlement agreement with Okada’s former companies Aruze USA and Universal Entertainment Corporation.
Wynn Resorts had originally filed its lawsuit against Okada in 2012 after identifying the Japanese gaming mogul as an “Unsuitable Person” amid allegations he provided improper hospitality at Wynn properties to Philippine gaming officials to the tune of US$110,000 in a bid to win favor for his Okada Manila project. Okada has denied the accusation.
The removal of Okada from the board in 2012 was also the catalyst for the company to redeem over 24 million shares of Aruze USA, at the time Wynn’s main shareholder and headed by Okada himself. Last week’s settlement agreement brought that matter to a close with Wynn agreeing to pay Aruze USA and its parent company Universal Entertainment almost US$2.5 million relating to the redemption notes and accrued interest.
Notably, the departure of former Chairman and CEO Steve Wynn – who stepped down on 5 February following the infamous Wall Street Journal report alleging years of sexual misconduct – has sparked a major shift in direction for Wynn Resorts with new CEO Matt Maddox seemingly intent on clearing the decks and dispelling old ghosts.
***
It hasn’t been all smooth sailing for Wynn Resorts this week with the Macau SAR Court of First Appeal ruling that Wynn Macau had violated the Macau Personal Data Protection Act by transferring the personal data of former Pagcor officer Rogelio Yusi Bangsil Jr without his permission.
Bansgil Jr and his wife were both named in a report commissioned by Wynn Macau in 2011 outlining the alleged “improper relationship” between Kazuo Okada and Pagcor officials that led to Okada’s ousting from the Wynn Resorts board. After losing his job, Bansgil Jr filed a lawsuit against Wynn Macau in 2014.
Prosecution lawyer José Leitão told Macau News Agency on Wednesday, “The court confirmed today that the act was committed in violation of the Macau Personal Data Protection Act.”
No date has been set for the court to officially hand down its final decision.
RelatedPosts
