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Shareholder files lawsuit against Okada over Wynn stake


Universal Entertainment Corp announced that it will defend a lawsuit filed by an individual shareholder of the company claiming damages of nearly 421.6 billion yen ($3.42 billion).

The claim stems from alleged losses as a result of action Wynn Resorts took to forcibly redeem chairman Kazuo Okada’s holding in the U.S. company after accusing him of violating American foreign-corruption laws.

In a filing last week, Universal Entertainment said that one of its shareholders, Tsuyoshi Hosoba, alleged the company’s management breached duty of loyalty and duty of due care, which resulted in Wynn Resorts cancelling its stake in February 2012.

Okada was chair of Wynn Ltd and had a 20 percent stake in the company until the board moved to buy Okada out of the company at a 30 percent discount.

Wynn alleged that Okada had made improper payments to Philippine government officials to advance his planned $2 billion casino project there. Wynn's civil lawsuit against Okada centers on allegations that Okada breached his fiduciary duties as a director in making those payments.

 

 

 

 

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