Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

Universal Entertainment Seeks To Bar Redemption Of Okada's Stake In Counterclaim

RELATED NEWS
Trade WYNN now with 

Universal Entertainment Corp. (UETMF.PK) Tuesday reported filing a counterclaim against Wynn Resorts Ltd. (WYNN: Quote) in a bid to block the redemption of the 20 percent stake in Wynn Resorts held by its subsidiary Aruze USA Inc. The move follows Wynn Resorts' announcement of February 19, 2012, which said the company had sought the resignation of director Kazuo Okada after finding him in breach of US Anti-Corruption Laws, and had also redeemed his 20 percent stake.

Okada, also Chairman of the Board at Universal Entertainment commented "We are taking this action to protect our investment from what we believe to be an unconscionable course of conduct perpetrated by Steve Wynn and the Wynn Resorts Board of Directors to facilitate Mr. Wynn's agenda of maintaining his absolute control over Wynn Resorts and in order to enrich himself."

Besides alleging that, contrary to Wynn Resorts's statement, the stake had not been redeemed, Universal Entertainment said that such a redemption had no legal basis as the redemption provision relating to Wynn Resorts's stake was executed at a later date to Aruze USA's acquisition of the stake.

Additionally, the counterclaim argues that there was no basis for redeeming the stake at a 30 percent discount and accuses Steve Wynn and Wynn Resorts's general counsel Kim Sinatra of fraud and defamation, possibly in violation of Nevada's RICO statutes. The counterclaim seeks damages, punitive damages, treble damages and also a permanent injunction and declaratory relief.

Register
To receive FREE breaking news email alerts for Wynn Resorts Ltd. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
A number of major retailers will be open on Thanksgiving for early Black Friday shopping events. Kohl's department stores will kick off Black Friday sales two hours earlier this year, at 6 p.m. Thanksgiving Day, while Macy's, Bon-Ton and Best Buy will open at the same time. J.C. Penney and Sears... Twitter Inc. has replaced its head of product Daniel Graf just six months after luring him over from Google, according to multiple reports. Graf, previously known for his work leading Google Maps, will retain his vice president of product title and work on Twitter's geolocation features, the Wall... LinkedIn Corp., the world's largest online professional network, said Thursday after the markets closed that its third quarter loss widened slightly from last year, as higher costs and expenses more than offset a 45% increase in revenue. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations as did its quarterly revenue.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.