Several law firms have announced that they are investigating potential claims on behalf of shareholders of Wynn Resorts, Limited concerning possible breaches of fiduciary duties by the company or its fiduciaries. The law firms’ investigations are related to a $135 million donation in May 2011 from Wynn Macau, a majority-owned subsidiary of Wynn Resorts, to the University of Macau Development Fund, and allegations that certain officers and directors of Wynn Resorts violated the FCPA by providing improper monetary benefits to government officials in Macau.
In February, the SEC sent a letter to Wynn requesting that the company preserve information relating to the donation to the University of Macau, any other donations to other educational charitable institutions, and Wynn Resorts’ Casino or concession gaming licenses or renewals in Macau.
The SEC’s inquiry followed allegations in a lawsuit filed in January by former Wynn Resorts director and its largest shareholder, Kazuo Okada. Okada claims that the donation 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 instalment of the payment is due in ten years, when Wynn Resort’s Macau gaming license is set to expire.
Wynn Resorts, together with its subsidiaries, engages in the development, ownership and operation of destination casino resorts.