More Shareholders Suing Wynn Directors
By: Brenda Stokes
on Thursday, April 05, 2012
It looks like the lawsuits being filed against Wynn won't be stopping anytime soon. In fact, two more shareholders just filed lawsuits yesterday against the directors of Wynn Resorts Ltd. This follows the recent legal battles playing out in two separate courts between board member Kazuo Okada and the resort chain.
The original allegations are based on an agreement Wynn made to donate $135 million the University of Macau. Okada contested, saying this wouldn't be the right move because Wynn has a gaming license there. However, Wynn is claiming Okada gave benefits to gaming regulators in the Philippines and is working on building a competitor resort in the area.
The two shareholders that recently filed a suit against the directors of Wynn didn't name Okada specifically. However, both suits do deal with the donation to the University of Macau. Wynn Resorts hasn't had much to say about these recent lawsuits or any of the lawsuits in general. They've stopped making public statements about the matter.
Damages being sought aren't clear at the moment, though one major stipulation is that Wynn needs to improve how it handles its adherence to FCPA-compliance policies. It will be interesting to see how this case moves forward.
The addition of these new suits surprised absolutely no one. All three are filed with the U.S. District Court of Nevada.