Wynn Resorts to Pay Over $2 Billion. Wynn forcibly redeemed shares owned by Universal Entertainment, then valued at $2.77 billion, at a 30% discount..By Todd Horwitz, Bubba Trading.


Wynn Resorts to Pay Over $2 Billion

Wynn Resorts Ltd. will pay $2.6 billion to settle litigation with a company that at one time held a 20% stake in the casino giant, but was forced by Wynn in 2012 to give up its shares, according to people familiar with the settlement.

Wynn forcibly redeemed shares owned by Universal Entertainment, then valued at $2.77 billion, at a 30% discount, and the board voted to remove Universal’s founder and former chairman, Kazuo Okada, as a nonexecutive director. Wynn said an internal investigation conducted by a former Federal Bureau of Investigation director had found Mr. Okada to be “unsuitable,” based on the company’s own regulations. Wynn then filed suit in Nevada court against Universal and Mr. Okada, claiming breach of fiduciary duties and other offenses. Universal and Mr. Okada filed their own claims against Wynn, disputing the validity of the share redemption.

The settlement announced Thursday is the latest dramatic turn since Steve Wynn resigned last month from the casino empire he founded amid a sexual harassment scandal. It adds $464 million to a $1.94 billion 10-year promissory note Wynn gave Universal in 2012 for the shares, and it puts an end to the biggest chunk of the court fight that started with the acrimonious falling out between Steve and his former business partner, Kazuo Okada.

Mr. Wynn stepped down in February after a Wall Street Journal investigation detailed allegations that would amount to a decades long pattern of sexual misconduct. They included an allegation that Mr. Wynn in 2005 paid a $7.5 million settlement to a manicurist who told people at the time that Mr. Wynn forced her to have sex with him. Mr. Wynn at the time said it was “preposterous” that he would assault a woman; he hasn’t responded to specifics of other allegations. In announcing his resignation, Mr. Wynn said he could no longer be effective in an environment in which “a rush to judgment takes precedence over everything else, including the facts.”

Keep those stops tight
Todd “Bubba” Horwitz


Financial & Political Commentary



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Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.