Wynn says case against company will be ‘easily dismissed’
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.