San Diego, CA -- (SBWIRE) -- 03/21/2012 -- Following the lawsuit filed by Aruze USA, an enterprise indirectly controlled by Kazuo Okada, against Wynn Resorts, Limited and certain members of the board directors an investigation for investors in NASDAQ:WYNN share over potential breaches of fiduciary duties by certain officers and directors of Wynn Resorts, Limited was announced in connection with certain transaction to the University of Macau Development Foundation.
Investors who are current stockholders of Wynn Resorts, Limited (NASDAQ:WYNN) shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm focuses on potential claims on behalf of investors in Wynn Resorts, Limited (NASDAQ:WYNN) concerning whether certain officers and directors of Wynn Resorts, Limited the Foreign Corrupt Practices Act ("FCPA") by providing improper monetary benefits to government officials in Macau.
The lawsuit filed by Aruze USA Inc, the enterprise indirectly controlled by Kazuo Okada that is the biggest shareholder in Wynn Resorts, against the Wynn Resorts, Limited and certain of its directors alleges that they breached their fiduciary duties to Wynn Resorts Ltd and to Aruze USA in not undertaking a thorough, independent, and objective examination and by voting for a wholly unnecessary and improper redemption on unconscionable terms. The plaintiff alleges that the Wynn Resorts has refused to allow the plaintiff to see its books. Kazuo Okada is seeking to review the financial records of Wynn Resorts after becoming concerned about the use of certain funds invested through Aruze USA. According to the complaint the plaintiff says that in 2002, in connection with the development of the Wynn Macau project, Steve Wynn first asked Mr. Okada for $30million, supposedly to finance due diligence, and then an additional $90million to fund other elements of the enterprise, for a total of $120m.
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 Company has informed the Salt Lake Regional Office that it intends to fully comply with the SEC’s request.
The SEC' s inquiry followed allegations in the lawsuit filed by former director of Wynn Kazuo Okada. Mr. Okada claims that the donation was improper because (1) the University of Macau Development Foundation is connected to government officials who regulate gambling in Macau, the University of Macau Development Foundation sits on government owned land; and the final installment of the payment is due in ten years, the precise moment when Wynn's Macau gaming license is set to expire.
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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