Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Wynn Resorts    WYNN

My previous session
Most popular
News SummaryMost relevantAll newsOfficial PublicationsSector newsTweets

Wynn Resorts : settles lawsuit for $2.4B with Tokyo company

share with twitter share with LinkedIn share with facebook
share via e-mail
03/09/2018 | 02:25am CEST

LAS VEGAS (AP) — Wynn Resorts has agreed to pay $2.4 billion in a settlement with a Tokyo casino game maker and its U.S. unit over the forced redemption of their shares in the Las Vegas-based casino operating company in 2012.

The company on Thursday announced the settlement with Universal Entertainment Corp., which previously held an almost 20 percent stake in Wynn Resorts through its subsidiary Aruze USA Inc.Wynn Resorts, which is facing scrutiny over sexual misconduct allegations against its founder and former CEO, agreed to pay the sum by March 31.

The legal fight between the companies dates back to 2012, when Wynn Resorts pushed out Universal's founder Kazuo Okada after finding the Japanese tycoon made improper payments to overseas gambling regulators. The actions by Wynn Resorts stemmed from a separate casino resort project Okada was undertaking in the Philippines.

After a year-long investigation led by former FBI Director Louis Freeh, Wynn Resorts said it found more than three dozen instances over a three-year period in which Okada and his associates engaged in "improper activities for their own benefit." That included cash payments and gifts totaling about $110,000 to foreign gaming regulators, the company said.

Okada was ousted from Universal last year over fraud accusations. He has denied any wrongdoing.

Aruze's shares were worth about $2.7 billion when Wynn Resorts forcibly redeemed them in February 2012 and issued a 10-year, $1.9 billion promissory note.

The settlement is the latest in episode in a tumultuous period for Wynn Resorts that began in late January, when the Wall Street Journal reported that a number of women said the company's founder, Steve Wynn, harassed or assaulted them and that one case led to a $7.5 million settlement with a manicurist. Since then, groups of shareholders as well as current and former employees have filed lawsuits against the billionaire and the company's board of directors.

Steve Wynn has vehemently denied the accusations the newspaper reported and attributed them to a campaign led by his ex-wife, Elaine Wynn. Her attorney has denied that she instigated the news story.

Steve Wynn resigned as chairman and CEO of the company Feb. 6. The company on Wednesday announced changes to its board of directors.

The company is also facing scrutiny by gambling regulators in Nevada and Massachusetts. Regulators in Macau, the Chinese enclave where the company operates two casinos, are also inquiring about the sexual misconduct allegations.

The initial newspaper report about Steve Wynn's misconduct sent the company's shares plunging but they have since stabilized.

Alex Bumazhny, gambling analyst with Fitch Ratings, said the agreement announced after the market closed Thursday seems to be a middle ground that Wynn Resorts' "capital structure can digest."

"The settlement is a positive as it removes an overhang for the company although a question remains how Wynn Resorts will fund it," he said.

The settlement ends claims brought by Universal and Aruze against Wynn's China arm, Wynn Macau. But it does not entirely resolve the years-long case in state court in Las Vegas.

While Aruze has agreed to not consider itself a party to a shareholders agreement, Elaine and Steve Wynn remain locked in a fight over the document, which has barred her from controlling her roughly 10 percent stake in the company.

Follow Regina Garcia Cano on Twitter at https://twitter.com/reginagarciakNO

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed., source Associated Press News

Stocks mentioned in the article
ChangeLast1st jan.
WYNN MACAU LTD 4.47% 20.1 End-of-day quote.-16.25%
WYNN RESORTS -0.42% 136.73 Delayed Quote.-18.90%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on WYNN RESORTS
09/20WYNN RESORTS LTD : Regulation FD Disclosure (form 8-K)
09/19NASDAQ 100 MOVERS : Chkp, jd
09/19WYNN RESORTS : Suffolk Downs files $1B lawsuit against Wynn Resorts
09/18WYNN RESORTS : Lawsuit alleges Wynn cheated to win casino license
09/18WYNN RESORTS : denies lawsuit claims he cheated to win casino license
09/13WYNN RESORTS : Gaming commission extends investigation into Wynn
09/13WYNN RESORTS : Massachusetts Gaming Commission in final stages of Steve Wynn inv..
09/11Las Vegas is booming again, and bracing itself for next slump
09/11Las Vegas is booming again, and bracing itself for next slump
09/11WYNN RESORTS LTD : Regulation FD Disclosure, Financial Statements and Exhibits (..
More news
News from SeekingAlpha
09/19Bright day setting up for casino stocks 
09/19Stocks Track Higher As Trade Anxiety Fades (Wall Street Breakfast Podcast) 
09/19WALL STREET BREAKFAST : Stocks Track Higher As Trade Anxiety Fades 
09/18Wynn Resorts sued over Massachusetts license 
09/16Macau casinos open again after typhoon 
Financials ($)
Sales 2018 6 737 M
EBIT 2018 1 312 M
Net income 2018 323 M
Debt 2018 6 579 M
Yield 2018 2,22%
P/E ratio 2018 38,24
P/E ratio 2019 16,06
EV / Sales 2018 3,18x
EV / Sales 2019 2,80x
Capitalization 14 855 M
Duration : Period :
Wynn Resorts Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends WYNN RESORTS
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 17
Average target price 181 $
Spread / Average Target 32%
EPS Revisions
Matthew O. Maddox President, Chief Executive Officer & Director
Daniel Boone Wayson Non-Executive Chairman
Craig S. Billings CFO, Treasurer & Chief Accounting Officer
Alvin V. Shoemaker Independent Director
Patricia Mulroy Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
WYNN RESORTS-18.90%14 855
LAS VEGAS SANDS CORP.-12.29%48 029
KANGWON LAND, INC.--.--%5 466