Boston, MA 03/04/2013 (wallstreetpr) – Steve Wynn and other directors of Wynn Resorts Ltd (NASDAQ:WYNN) are facing the renewed shareholder lawsuit which alleges $135 million donation to Macau breached fiduciary duties and wasted company assets.
This accusation by Louisiana police retirement fund is resembles the case of former Wynn director Kazuo Okada who sued a casino operator over a gift in 2012. They were dismissed by U.S. District Judge James Mahan in Las Vegas in February. He stated that the investors failed to prove that the Wynn and other directors has done something wrong, he believes that they can try again.
The fund asked for more time to file an amendment complaint, Wynn resorts agreed to this extension in court. Is new suit is estimated to be filed by Mar.18 as per judge’s consent to pursue it as stated in the filing.
Wynn and all other directors approved the gift to the University of Macau’s Development Foundation in May.2011. Macau’s government accepted that they approved the plan to build $4 billion resort on 51 acres of land as proposed by Las Vegas Based Company; this resort was planned on Cotai Strip.
Okada resigned from the board of directors as the shareholders votes seemed more to remove him.
The case is Louisiana Municipal Employees’ Retirement System v. Wynn, 2:12-cv-00509, U.S. District Court, District of Nevada (Las Vegas).
Wynn Resorts Ltd (NASDAQ:WYNN) is down by 1.10% and currently trading at $115.29