This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Wynn Resorts Boots Director, Redeems Stake

NEW YORK ( TheStreet) --The board of Wynn Resorts (WYNN - Get Report) is booting company co-founder and director Kazuo Okada and forcibly buying out his stake in the company.

The moves follow what the company says was a year-long investigation into potentially improper payments to overseas gaming regulators by Okada and his associates. Okada was Wynn's largest shareholder.

They also come after the disclosure earlier this month that the Securities and Exchange Commission was looking into donations Wynn made to educational institutions in Macau, China, where Wynn operates casinos.

In a news release Saturday, Wynn Resorts said its own probe, led by former FBI Director Louis Freeh, uncovered "more than three dozen instances over a three-year period in which Mr. Okada and his associates engaged in improper activities for their own benefit in apparent violation of U.S. anti-corruption laws."

> > Bull or Bear? Vote in Our Poll

All board members with the exception of Okada voted to request his resignation, the release said.

The board also has redeemed 24 million shares of Wynn Resorts owned by Aruze USA, of which Okada is the principal shareholder.

Based on Friday's closing level of $112.69, those shares have a market value of $2.7 billion.

But Wynn Resorts is compensating Okada with significantly less. The company said it will pay him $1.9 billion in 10 years. The payment is in line with Wynn's articles of incorporation, the release said.

The news release also said that Wynn on Saturday filed a lawsuit against Okada and his company's Aruze USA and Universal Entertainment Corp. in Nevada District Court for breach of fiduciary duty and related offenses.

Wynn Resorts operates high-end casinos in Las Vegas and Macau, China.

It's not the only U.S. casino company to be troubled with probes into potential overseas bribery.

Rival Las Vegas Sands (LVS) is being investigated for its compliance with the U.S. Foreign Corrupt Practices Act.

Shares of Las Vegas Sands ended Friday down 47 cents at $52.79.
This article was written by a staff member of TheStreet.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
WYNN $73.25 -0.77%
AAPL $109.44 -0.84%
FB $87.98 -0.19%
GOOG $600.75 -0.91%
TSLA $242.32 -1.30%

Markets

Chart of I:DJI
DOW 16,136.38 -238.38 -1.46%
S&P 500 1,917.52 -33.61 -1.72%
NASDAQ 4,674.8760 -58.6210 -1.24%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs