Let bygones be bygones: Wynn Resorts withdraws legal claims vs. Okada

Let bygones be bygones: Wynn Resorts withdraws legal claims vs. Okada

Casino operator Wynn Resorts has finally decided to bury the hatchet with Japanese gambling mogul Kazuo Okada, dropping all legal claims it had filed against the businessman.

Let bygones be bygones: Wynn Resorts withdraws legal claims vs. OkadaThe Wall Street Journal reported that Wynn Resorts informed a Nevada court that it will no longer pursue claims of breach of fiduciary responsibility and other offenses against Okada.

Okada, who invested $260 million when Wynn Resorts was still in its infancy, welcomed the legal developments in Nevada, saying that “the world knows what I have known all along—I am innocent.”

The public fallout between Okada and Steve Wynn stemmed from Okada’s decision to sue the Wynn Resorts founder for blocking access to financial documents related to a $135-million donation by Wynn Resorts to the University of Macau.

Each claimed the other made improper payments to foreign gaming regulators in a bid to win favor in their respective Macau and Philippine markets, and the acrimony attracted the attention of legal regulators, investors and analysts worldwide.

There are two possible reasons why Wynn decided to end its bitter quarrel with the Japanese businessman.

According to a Las Vegas Review-Journal report, Okada threatened to block a $2.4 billion stock redemption dispute with Japan-listed gambling operator Universal Entertainment Corp and its Aruze USA Inc unit.

It would be recalled that Wynn Resorts and Universal recently agreed to dismiss all litigation between the two companies, including its former directors and executives. However, Okada, the founder and former chairman of Universal, claimed that he should be included in the Wynn Resorts-Universal deal.

The other reason Wynn Resorts wants the Okada case off its plate is so it can focus on mitigating the impact of the sexual misconduct scandal involving its founder and former chairman Steve Wynn.

Wynn Resorts was reportedly under pressure to resolve the Okada case in order to remove one barrier that prevents Steve Wynn from selling casino shares. Now that Okada and Universal is out of its way, Wynn Resorts will now have to deal with their former boss’ ex-wife, Elaine Wynn.