Wynn Faces Renewal of Suit Over Macau by Louisiana FundLinda Sandler
Billionaire Steve Wynn and other directors of Wynn Resorts Ltd. face renewal of a shareholder lawsuit alleging a $135 million donation to the University of Macau breached fiduciary duties and wasted company assets.
The accusations by a Louisiana police retirement fund resembled those of former Wynn Resorts director Kazuo Okada, who sued the casino operator over the gift in January 2012. They were dismissed in February by U.S. District Judge James Mahan in Las Vegas, who said the investors didn’t convincingly show that Wynn and his directors had done anything wrong. He said they could try again.
The fund yesterday asked in a court filing for more time to file an amended complaint, saying Wynn Resorts had agreed to the proposed extension. A new suit will be filed by March 18 seeking the judge’s consent to pursue it, according to the filing.
In May 2011, Steve Wynn and almost all of Wynn Resorts’ board approved the gift to the University of Macau’s Development Foundation. Last May, Macau’s government approved the Las Vegas-based company’s plan to build a $4 billion resort on a 51-acre site on the Cotai Strip.
Okada resigned from the board of Wynn Resorts in February ahead of a shareholder vote on whether 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).