Aug. 28, 2012
/PRNewswire/ -- Universal Entertainment Corp. (UE), and its chairman,
, today announced the filing of a lawsuit before the
District Court against Wynn Resorts, Limited (Nasdaq: WYNN), its Chairman and CEO,
, along with the company's directors and general counsel. The lawsuit seeks approximately
11 billion (approximately
) in damages related to Wynn's attempt to strip Aruze
Inc. (a subsidiary of UE) of its interest in Wynn Resorts and remove Okada as a director.
The lawsuit states that the global resonance of Wynn's actions and misleading public announcements led to a falloff in Universal Entertainment's stock price and new business opportunities, and damaged Okada's reputation.
The latest action, filed on
, opens an additional front in the legal dispute surrounding Mr. Wynn's attempt to damage the "reputation, credibility and property" of Universal Entertainment and Okada. That dispute has its roots in the 2010 divorce of
Steve and Elaine Wynn
, which resulted in
losing ownership of roughly half of his stock in the company, leaving Aruze
as the single largest shareholder and posing a threat to Wynn's total control of the company. When Mr. Okada questioned the propriety of a
pledge from Wynn Resorts to the University of Macau Development Foundation, Wynn moved to retaliate against Okada and eliminate the threat of dissension from the Wynn Resorts Board of Directors.
(Wynn Resorts made the pledge at a time when it was seeking a gaming license for a casino in Macau. The Chancellor of the University of
is also the head of
's government, with ultimate oversight of gaming matters. The U.S. Securities and Exchange Commission is reviewing the University of Macau Foundation donation by Wynn Resorts over possible violation of the Foreign Corrupt Practices Act. That pledge is also the subject of an inquiry by the Nevada Gaming Commission, as well as the basis for six separate shareholder lawsuits against Wynn Resorts Limited.)
In a counterclaim filed against Wynn Resorts, Limited and the Wynn Board of Directors earlier this year (now pending in the state court in
), UE is seeking to preserve Aruze USA's shareholder voting rights in Wynn Resorts, which Wynn Resorts wrongfully purported to redeem. This action asserts that
has indulged in fraud, deception, theft and betrayal to maintain control of his gaming enterprises and enrich himself based on a false and predetermined pretext.
The complaint filed in
District Court can be accessed at
- Steve Getzug, H+K Strategies, 310-633-9444 ( Los Angeles)
- John Morgan, H+K Strategies, 852-2894-6399 ( Hong Kong)
- Nobuyuki Horiuchi, Assistant General Manager, PR&IR Office, Universal Entertainment Corporation: TEL: 81-3-5530-3055 (switchboard)
SOURCE Universal Entertainment Corp.