NACD - National Association of Corporate Directors

Wynn Resorts Drops Litigation Against Former Largest Shareholder Kazuo Okada

"Wynn Resorts Ltd. on Monday dropped litigation against its former largest shareholder, Japanese pachinko mogul Kazuo Okada," according to a court order signed by the judge in the case and viewed by the Wall Street Journal (March 12, O'Keeffe). The move brings the company one step closer to resolving a six-year legal battle. Okada played a key role in creating Wynn Resorts, initially investing $260 million for a 50 percent stake in the business. But his relationship with the company soured when Wynn Resorts forcibly redeemed shares owned by Universal at a 30 percent discount in 2012, and Wynn's board of directors subsequently voted to remove him as a nonexecutive director. Wynn reasoned at the time that an internal probe conducted by a former FBI director had found Okada to be "unsuitable," based on the company's own regulations. Okada has maintained that he was ousted for challenging some of ex-Chairman and CEO Steve Wynn's decisions.

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