Wynn Resorts, Limited (NASDAQ:WYNN) Investor Lawsuit over Alleged Wrongdoing by Directors
An investor in NASDAQ:WYNN shares filed a lawsuit against directors of Wynn Resorts, Limited over alleged breaches of fiduciary duties and NASDAQ:WYNN stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWire) -- 04/02/2012 --An investor in NASDAQ:WYNN shares filed a lawsuit against directors of Wynn Resorts, Limited over alleged breaches of fiduciary duties for their alleged failure to properly manage Wynn Resorts.
Investors who purchased purchased shares of Wynn Resorts, Limited (NASDAQ:WYNN) have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
According to the complaint the defendants caused and /or allowed Wynn Resorts to engage in ultra vires acts, waste corporate assets and allow potential violations of the Foreign Corrupt Practices Act (FCPA) from at least 2009 to March 2012.
In May 2011, Wynn Macau, a majority owned subsidiary of Wynn Resorts, Limited, made a $135 million commitment to the University of Macau Development Foundation in support of the new Asia-Pacific Academy of Economics and Management.
Wynn Resorts, Limited said that the contribution consists of a $25 million payment made in May 2011 and a commitment for additional donations of $10 million each year for the calendar years 2012 through 2022 inclusive.
On February 8, 2012 Wynn Resorts, Limited received a letter from the Salt Lake Regional Office of the U.S. Securities and Exchange Commission (“SEC”) requesting that, in connection with an informal inquiry by the SEC, Wynn Resorts, Limited preserve information relating to the contribution made to the University of Macau, any donations by the Company to any other educational charitable institutions, including the University of Macau Development Foundation, and the Company’s casino or concession gaming licenses or renewals in Macau.
The plaintiff claims that beyond the donation of the $135million to the University of Macau, Wynn Resorts has admitted in a recently filed litigation that according to its own investigation, Mazuo Okada, its Vice Chairman of the Board, has, for the past several years, used accounts at Wynn Resorts to attempt to allegedly improperly influence gaming regulators in the Philippines for a casino project. The plaintiff says that Mr. Okada could not have used these accounts without the knowledge and approval of the board of directors of Wynn Resorts.
Furthermore the plaintiff says that defendants have also acted in a manner contrary to the best interest of Wynn Resorts by having Wynn Resorts engage in a reckless, improper internal investigation of Okada that was designed to force Okada out of his role as Vice Chairman of Wynn Resorts, and allow for the forcible redemption of the nearly 20% of common shares in Wynn Resorts controlled indirectly by Okada through Aruze USA, Inc at a substantial 30% discount to its true value.
NASDAQ:WYNN shares traded in July 2011 as high as over $165 per share and dropped the end of 2011 to almost $100 per share. Since then NASDAQ:WYNN shares have recovered some value and closed on Friday, March 30, 2012 at $124.88 per share.
Those who purchased shares of Wynn Resorts, Limited (NASDAQ:WYNN) and currently hold those Wynn Resorts, Limited (NASDAQ:WYNN) shares, have certain options and should contact the Shareholders Foundation.
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View this press release online at: http://rwire.com/134749