Wynn Resorts Gets Good News From Regulator, Court

State regulators have dismissed allegations against the company and a federal court has blocked a lawsuit from proceeding.

Matt Thalman
Matt Thalman
(TMFMT)
Feb 4, 2013 at 3:29PM
Consumer Goods

This morning, Wynn Resorts (NASDAQ:WYNN) announced what the company is calling "three positive developments." All three of the developments pertain to one of the company's board members, Kazuo Okada, who made allegations back in March 2012 that Wynn Resorts made improper donations to the University of Macau in exchange for gaming licenses in the region.

The first of the three developments is that the Nevada Gaming Control Board has finished its investigation into this matter and found that Okada's allegations were "unfounded," Wynn Resorts said. The second development is that the U.S. District Court of Nevada has granted Wynn Resorts' motion to dismiss a lawsuit against the company and its board members which stemmed from the $135 million donation made to the University of Macau. Wynn said the court said there was "insufficient legal basis" for the case to continue.

Lastly, Wynn reported that a "leading proxy advisory firm," Institutional Shareholder Services, is now recommending that all Wynn Resorts shareholders vote to remove Kazuo Okada from the company's Board of Directors. Wynn Resorts will be holding a special meeting of shareholders on Feb. 22, in which the vote will take place.

Wynn Resorts in its press release said: "We are deeply gratified that Nevada gaming regulators have rejected Mr. Okada's baseless allegations against our Company, that a federal court has dismissed the complaint against our Directors and that a leading proxy advisory firm is recommending Mr. Okada's removal from our Board."

link