Okada loses legal battle against Wynn Resorts over appeal

Posted On 27 Feb, 2019 0

Japanese casino mogul Kazuo Okada has been in legal troubles a lot lately. He has a few cases pending against him, the major one is where he duped his former company, Universal Entertainment Corp. for nearly $2 billion.

He is also involved in a battle against Wynn Macau, the Macanese arm of the global casino giant Wynn Resorts. In 2017, he lost a court battle against Wynn Resorts along with Universal and Aruze USA, over a stock redemption dispute a few years prior.

The loss wasn’t accepted by Okada and he subsequently filed an appeal, which has recently been heard by Macau’s Court of Second Instance, and once again, Okada has lost the battle. The other two entities alongside Okada reached a settlement with Wynn Resorts and got $2.4 billion as compensation.

In 2012, Okada had been ousted from Wynn Resorts’ board after the latter determined that Okada was 'unsuitable' for the company and the company could suffer losing its licenses. At the time, Okada was the single biggest shareholder in Wynn who also controlled Aruze’s share in the company.

Wynn Resorts later nullified Okada’s 20% holdings, amounting to 24.5 million shares, and issued him a promissory note for around $1.9 billion, which was 30% less than what Okada actually held. This deal challenged Okada, who took Wynn Resorts to court. Okada even tried to show that Wynn Resorts had a history of fraudulent business activities.

The Macau Court of First Instance, in July 2017, had dismissed this case and even fined Okada and other two companies as “vexatious litigants”. This decision was upheld again by the Court of Second Instance, upholding all the lower court’s decisions taken previously. Wynn Resorts, on the other hand, was also involved in a case against its founder and Wynn over alleged sexual assaults on multiple women while in the capacity of Chairman to the company, but Nevada reached a settlement with the company this month.

Okada himself didn’t comment his appeal’s dismissal but with many cases pending against him already, he should probably just let this one go. Keep reading GutshotMagazine.com for more such industry news and general gambling/gaming related news from around the world.

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