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Wynn's major investor has 'lost trust' in resort company management
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Kazuo Okada:
Accuses Wynn Resorts of failing to open confidential business records for his review.
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LAS VEGAS REVIEW-JOURNAL
Kazuo Okada, the Japanese billionaire and dissident shareholder suing Wynn Resorts Ltd. for access to financial records, has "lost trust in management" of the gaming company, according to a brief filed with a Las Vegas court.
In a prehearing brief filed Friday in Clark County District Court, attorneys for Okada, who owns 19.66 percent of Wynn Resorts, accused the company of failing to open certain confidential business records for him to review, making it difficult for him to fulfill his duties as a director.
Judge Elizabeth Gonzalez has scheduled a Thursday hearing on the issue.
Okada filed a lawsuit Jan. 11 in Clark County District Court seeking a court order to force Wynn Resorts to release financial records, particularly documents relating to the $135 million donation a company subsidiary, Wynn Macau Ltd., has pledged to the University of Macau Development Foundation.
Okada, who is 68, also wants to know how $30 million he invested in Wynn Resorts in 2002 to help develop a Macau resort was used. Okada, who owns slot machine maker Aruze USA and its parent company Universal Entertainment Inc., has invested $380 million in Wynn Resorts since 2000.
Attorneys for Wynn Resorts claim the donation issue is a smokescreen, and have said in court papers that Okada should have raised any concerns with company founder Steve Wynn.
In Wynn's view, the dispute stems from the Wynn Resorts board decision not to invest in Okada's development of a casino hotel in Manila, which it saw as competition for other Wynn properties in Asia. Attorneys for Wynn Resorts also accused Okada of misrepresenting any links between Wynn and Okada's the project, which is under construction adjacent to Manila Bay.
"We have a sharp disagreement with our colleague with regard to the Philippines," Wynn told analysts on a conference call Thursday. "And we have expressed our conviction that it was not an appropriate business opportunity for us for a couple of years now."
Wynn assured analysts it was the "unanimous opinion of the board of directors" not to go into business in the Philippines.
Okada's response to Wynn's Jan. 30 filing never mentions Universal Entertainment's $2 billion project in Manila. In the 17-page filing, attorneys for Okada focus on the businessman's duties as a Wynn director and dispute the company's claim there is no "right of director inspection in Nevada."
In their brief Friday, Okada's attorneys claim that being denied access to the records he requested was impeding his ability to act as a director.
"Mr. Okada has a fiduciary duty to act in the best interest of the corporation and its stockholders, and to act in an informed manner," Okada's filing said. "Without the right to inspect the company's books and record he cannot fulfill that duty. Inspection is the director's primary tool to ensure that the company's management is acting in the best interests of the corporation and its stockholders."
Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.
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Bummer! You buy all that stock, become a director and you are not allowed to see all the books? Lets all pay attention to this one - how can a company take money from an investor and not be required to show him all the books? What is the big secret? This guy should give IRS a call.
Wynn is a greedy jerk who cares more about Macau than Las Vegas. He got forced out at Mirage, and it's maybe happening here again. Good riddance.
Mr. Okada has joined forces with another company to build a competing company. This appears to be a way to try to force a buy out of his share of Wynn stock since Mr. Wynn would not join in the other company. Who is taking bets that Mr. Okada won't be a share holder by the end of this year? ;-)
Does this $135 million donation somehow relate to Howard Stutz previous story in the RJ?
In September, Wynn announced it had agreed to pay a premium for land next to the City of Dreams development and the Macau University of Science and Technology campus. Wynn Resorts Chairman Steve Wynn has said the company would start construction as soon as the land was granted. The Macau government, however, said the Wynn deal was not settled.
It's hard to predict this law suits. Wynn hired one of OJ Simpson's attorney, Robert Shapiro, among many expensive attorneys. Shapiro has been handling defenders. Prosecutor was Roger, who was CC Prosecuting attorney, Roger is now with Metro's cop union and busy protecting a cop pervert arrested, first case. Okada does not have Roger against Shapiro. Kind of hard to see outcome. I will have to check the background of Okada's attorney from Japanese publications before I conclude my guess-works.
After the $1 sale of the "What Happens here, stays here" copyright to R&R Partners on November 9, 2004, the LVCVA paid $321,000 in attorney's fees because of an investigation into the legality of the controversial sale.The sale was later overturned by a federal judge who claimed that the sale was made without the knowledge of the board---- THE LVCVA is a corupt private/public entity that funnels hundreds of millions of dollars to its good ole boy system of hucksters... we need to stop them NOW !!
Time to get rid of Wynn stocks, company maybe shaky!!!!
Wynn is a public company that is regulated by the SEC. Since it is involved with gaming it is subject to strict regulations by the State of Nevada. There is no way a public company like Wynn is going to jeopardize its existence by hiding things from its shareholders. It is just not going to happen. This case has absolutely no merit other than some newspaper articles. This case is a waste of the court's limited resources.
Hard to blame the guy. Wynn needs to spend more time managing and less time engaging in his idiotic political nuttery.
Okada being on the board and being largest shareholder......what else would someone need to qualify to look at the books??
in Wynn's world what does one need to look ??
geesh something wrong.....if Wynn goes blind who then is qualified to look?
if no board member can look and the largest shareholder can't look........just the hell can??
i guess the person or persons who write the books are the only ones to see them...oh besides Wynn.
time for an audit Steve ?