Wynn Resorts has criticized a new lawsuit filed by a public employee pension fund in the US state of Louisiana that claims the casino giant’s US$135 million donation to the University of Macau was improper and potentially illegal.
“This is simply an attempt to recycle a complaint that was previously dismissed by a federal judge,” a statement from the US-listed, Las Vegas-based operator said. “We will defend vigorously and expect it to meet the same fate as its predecessor: dismissal.”
The Louisiana Municipal Employees’ Retirement System, together with other investors, sued Wynn in federal court last year, but the case was dismissed, the judge ruling that they didn’t show that company Chairman Steve Wynn and other directors had done anything wrong. They filed an amended lawsuit earlier this week in US District Court in Las Vegas which they say corrects the “perceived defects” in the first action. The amended suit doesn’t allege that Wynn Resorts broke U.S. anti-bribery laws, only that the company knew or should have known the UMAC donation might violate the Foreign Corrupt Practices Act. The suit calls the donation “an improper attempt by the board to influence the procurement of a casino license,” a reference to the Macau government’s permission, granted last year, for the company to build a $4 billion resort in the city’s burgeoning Cotai resort district.
The plaintiffs argue the donation caused a series of events which they say damaged shareholders, including lawsuits and more than US$1.9 billion spent to buy out Kazuo Okada’s stake in the company. Mr Okada and his Japan-based Universal Entertainment were forced out last year following an in-house investigation into their dealings in the Philippines, where they are developing a casino and where Wynn alleges they violated U.S. anti-corruption laws.
Mr Okada, a co-founder of Wynn Resorts and formerly its largest individual shareholder, also has challenged the UMAC donation. He was removed from the board of Wynn Macau last year and resigned from the board of the parent company last month, a day ahead of a vote by the shareholders to remove him.
He denies the company’s allegations and is countersuing Wynn over the forced redemption of his shares.
RelatedPosts
