A former business partner of Las Vegas Sands in Macau has accused the gaming giant of misappropriating trade secrets and is suing for at least US$5 billion.
Asian American, headed by Taiwanese businessman Marshall Hao, filed the complaint in US District Court in Nevada, where LVS is based, claiming LVS violated their joint ownership of copyright related to LVS’ ultimately successful bid to win a casino concession in Macau.
The case is the latest in a string of legal claims that have beset LVS in connection with its dealings in China.
Las Vegas Sands and Asian American jointly submitted a bid for a Macau gaming concession in 2002. But Sands later switched partners, teaming up instead with Hong Kong’s Galaxy Entertainment. The Sands-Galaxy combination went on to win one of the three original licenses with a bid submission that was nearly identical to the bid crafted with Asian American, according to Asian American, which claims that Sands is guilty of disclosing information to Galaxy that was so sensitive the parties “hired bodyguards” to protect the documents.
The $5 billion in damages sought by Asian American is calculated in part on the earnings LVS has enjoyed from its Macau casinos.
“This is an action for money damages arising out of profits owed to plaintiff by [LVS] for use and benefit of the work which ultimately led to the Las Vegas Sands enterprise securing a Macau concessions contract,” the company said in the US complaint.
Las Vegas Sands denies the claims. “Using a different lawyer every time, [Asian American] has repeatedly filed lawsuits trying to take credit for that which they didn’t do,” the company said. “US courts have consistently rejected those efforts. Las Vegas Sands will respond to this latest version of the same meritless lawsuit in court.”
Asian American is also suing in Macau.
Sands was forced last year to pay US$70 million to Hong Kong businessman Richard Suen after he sued the company in Nevada state court in Las Vegas claiming it had failed to make good on a promise to compensate him for using his influence and contacts to help win the Macau concession.
The company currently is engaged in a long-running courtroom battle with the former head of its Macau operations, Steven Jacobs, who is suing for wrongful termination.
Sands also is under investigation by the US Department of Justice and the Securities and Exchange Commission in connection with its adherence to federal anti-corruption laws.
