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Wynn says case against company will be 'easily dismissed'
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LAS VEGAS REVIEW-JOURNAL
Wynn Resorts Ltd. Chairman Steve Wynn said Wednesday that the legal action brought against the company by its largest shareholder "will easily be dismissed" and the proceedings "have nothing to do with control" of the casino operator.
Wynn's comments came in response to Sunday's Las Vegas Review-Journal "Inside Gaming" column concerning the legal dispute. The falling-out is likely to come up again today when Wynn hosts a fourth-quarter earnings report conference call for analysts and media.
The lawsuit was filed last month by Kazuo Okada, Wynn Resorts' largest shareholder with 19.66 percent of the company through his Japan-based Universal Entertainment Corp. and Aruze USA. Wynn said he was away from Las Vegas over the weekend celebrating his 70th birthday, and was unaware of the column until Wednesday, when a casino host mentioned it and told him, "no matter what, I'm with you."
Wynn said the lawsuit would not affect control of the $14.6 billion company with resorts in Las Vegas and Macau, because his shareholder agreement with Okada and his former wife, Elaine Wynn, "is wrapped in steel."
Okada, who has invested $360 million in Wynn Resorts, has asked to review Wynn Resorts financial records concerning a $135 million donation the company made to the University of Macau Foundation. The university is on Chinese government land.
Okada also wants to know how $30 million he invested in Wynn Resorts in 2002 to help develop a Macau casino was used, and wants access to a 2010 amendment of the shareholders agreement. The agreement gives Wynn voting rights for stock held by Okada and Elaine Wynn, or control of about 40 percent of the company.
Wynn said he expects the case, which is scheduled for an initial hearing in Clark County District Court on Feb. 9, to be dismissed.
"We have a lot more that will come out," Wynn said.
Wynn said Okada's demand has nothing to do with concerns about Wynn Resorts' spending. He said Okada "got himself into trouble" with an investment in the Philippines.
"That's what this is about," Wynn said, without offering details.
Universal Entertainment recently broke ground last month on the $2 billion resort in Manila. The 110-acre project includes three hotels, a convention center and glass-domed artificial beach.
Though not part of the lawsuit, Wynn Resorts has pointed to the Manila Bay development in responding to it. Okada reportedly wanted Wynn to help build the project, but was rejected because the company thought it would compete with its Macau casinos.
Wynn also disputed assertions, noted in the Sunday column, that he lost control of Mirage Resorts because of lavish spending before he sold the company in 2000 for $6.4 billion to what was then the MGM Grand Corp.
Wynn said the deal "was between me and Kirk (Kerkorian)," who at the time was MGM's controlling shareholder.
Las Vegas Review-Journal writer Chris Sieroty contributed to this report. Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Follow @howardstutz on Twitter.
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My error, another magazine wrote Simpson was not acquitted. I don't remember the trial. I was not watching TV at that time. :)
I read Japanese papers written in Japanese. This is just their info, not mine. One of Wynn's defense lawyers is O.J. Simpson's defense lawyer. Offense lawyer was Former Clark County Prosecutor Roger. Many up down trials, finally Simpson was acquitted. Roger is now CCP (a police protection agency for Las Vegas Metro) defense attorney. This defense lawyer defended Kerkorian and many Casion hotel owners. Okada may have a good chance to take over Wynn with his investment but Wynn might win with OJ Simpson attorney, For your information, las Vegas and Henderson cities are largest population cities in Nevada, inside of Clark County. Their legal system differs from other places. We suggest readers, be nice to policemen. Never have a comb in your hand, policemen may shoot you multiple times by mistaking your combs as a knife. USA does not have gun control law. Policemen carry guns. However, Casinos are great. If yiou feel unsafe, stay inside of casino. Casino polices are prohibited to use guns. Don't think your Karate Chops will defend yourself from pistol.
That I translated by my broken English. Seems that the lawsuit will go to many years.
Wynn's recollection of the past, as any New Jersey gaming regulator can tell you, is not his strong suit. Wynn made a deal between himself and Kerkorian after he saw the writing the Mirage stockholders put on the wall.
Wynn lost control of Mirage become he ran the stock price into the ground and explained it to shareholders by singing show tunes at the stockholders meeting. It was like taking candy from a baby for Kerkorian.
Its 530am I think i will sell my Wynn calls today, Thats how great the 4th qt. will be. I keep making money with the guy, Happy 70th Steve, Keep up the great job people of Wynn Resorts.