The legal struggle between Wynn Resorts Ltd. and one of its board members includes new litigation and fresh accusations on both sides. In the latest developments, the board member has filed another lawsuit against Wynn to undo the company’s forcible buyback of his $2.7 billion in shares. Meanwhile, Wynn is accusing the board member of ducking service of process for a lawsuit the company filed against him.
We last discussed the increasingly nasty business litigation in both Nevada state and federal courts between Wynn and the board member back on March 29. The falling-out began in January. The board member, who was then the largest single shareholder, holding more shares even than company founder and chairman Steve Wynn, objected to an announced $135 million donation to the University of Macau. He implied that the gift was meant to influence Wynn Resort’s gambling license in Macau, a charge Wynn and other board members deny.
The dissenting board member sued Wynn in federal court to gain access to financial documents related to the donation he said were wrongfully kept from him. Since then, the two sides have traded several lawsuits. Among the accusations Wynn Resorts has made against the board member, a Japanese slot machine manufacturer, is that he paid off gaming regulators in the Philippines, where he has a casino development deal.
On June 14, the board member filed litigation in federal court in Las Vegas to force Wynn to sell him back his $2.7 billion stake in the company. He accused Steve Wynn personally of “fraud, deception, theft and betrayal [committed so as] to maintain control of his gaming enterprises.”
In response, Wynn Resorts released a statement calling the new lawsuit a “baseless” rehash of previous litigation. The statement also accused the board member of purposely avoiding being served with a lawsuit.
Source: VEGAS INC, “In ongoing dispute, Wynn hits back against board member,” Steve Green, June 15, 2012