Glancy Binkow & Goldberg LLP has announced that it is investigating potential claims on behalf of shareholders of Wynn Resorts, Limited concerning possible breaches of fiduciary duties by the Company or its fiduciaries. Wynn Resorts, together with its subsidiaries, engages in the development, ownership and operation of destination casino resorts.
The investigation is related to a US$135 million donation in May 2011 from Wynn Macau – a majority-owned subsidiary of the Company – to the University of Macau Development Foundation, and allegations that certain officers and directors of Wynn Resorts violated the Foreign Corrupt Practices Act by providing improper monetary benefits to government officials in Macau.
On January 11, 2012, Kazuo Okada, a former Wynn Resorts board member and its largest shareholder, filed a lawsuit in Clark County, Nevada, alleging that the donation to the University of Macau Development Foundation was improper because: (1) the Foundation is connected to government officials who regulate gambling in Macau; (2) the Foundation sits on government-owned land; and (3), the final installment of the payment is due in 10 years – when Wynn Resorts’ Macau gaming license is set to expire.
On February 8, 2012, the Company received a letter from the Securities and Exchange Commission requesting that the Company preserve information relating to the donation to the University of Macau, any other donations to other educational charitable institutions, including the University of Macau Development Foundation and Wynn Resorts’ casino or concession gaming licenses or renewals in Macau. (E-03.27.12)
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