Wynn Resorts: Breach of Fiduciary Duty Claim Against Board Member
Posted on Jan 01, 2016
Wynn Resorts, Ltd., scored a big victory recently when it successfully persuaded a U.S. judge to return its breach of fiduciary lawsuit back to Nevada state court. The suit was filed against Kazuo Okada, former vice chairman of the company. The company is trying to remove Mr. Okada from its board of directors.
The lawsuit was original filed in Nevada state court in February 2012. Mr. Okada had the case moved to federal court based on the theory that the underlying issue of the case was whether or not he had violated a U.S. law by making improper payments to foreign officials. The U.S. District Judge who heard Wynn Resorts’ request to send the case back held in favor of the company.
Steve Wynn, founder and chairman of Wynn Resorts, Ltd., has been battling to remove Mr. Okada from the company’s board of directors. Mr. Okada had helped to finance a Wynn Resorts casino 12 years ago. The company now accuses Mr. Okada of making improper payments to gaming officials in the Philippines, a claim which Mr. Okada denies. The company further alleges that Mr. Okada is currently developing two new casinos and three hotels that are in direct competition with the Wynn Resorts’ casino in Macau. The new casinos and hotels are being developed in Manila and seek to lure “high limit, VIP gamblers” from China. Mr. Okada currently holds a 20 percent ownership interest in the company.
To learn more about this breach of fiduciary duty lawsuit and other New York breach of contract matters, contact an experienced New York business litigation attorney today. Call our office at 888-497-3410 for a free consultation.