Kazuo Okada, Japanese billionaire and formerly the largest shareholder in Las Vegas’ Wynn Resorts, has been given another chance to review Wynn Resort’s financial records. Last week, a Clark County District Court granted Okada permission to amend his request to review Wynn Resorts’ financial records, specifically a $135 million pledge to the University of Macau. Okada’s amended motion will be heard at a June 28 hearing.
In January, Okada, in his status as a director of the company, filed a motion requesting the court allow the financial inspection of all records related to the pledge. The court ordered Wynn to produce two pages which Okada had not seen. Since then the two sides have filed complaints and counterclaims alleging breach of contract, racketeering, securities fraud, and more. Wynn also redeemed Okada’s 20% stake in the company at a discount and has asked the court to remove Okada from the Wynn board.
Under Nevada Revised Statute (NRS) 78.257.1, Nevada stockholders who own or control at least 15 percent of “all of the issued and outstanding shares of the stock “of a Las Vegas business have the right to “inspect, copy, and audit financial records.” However, if the business has provided its stockholders with a “detailed, annual financial statement or … filed during the preceding 12 months all reports required to be filed pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934,” NRS 78.257.1 does not apply. NRS 78.257.6.
The case is Okada v. Wynn Resorts, A-12-654522-B, District Court, Clark County Nevada (Las Vegas). The federal court lawsuit is Wynn Resorts v. Okada, 12-00400, U.S. District Court, District of Nevada (Las Vegas.)
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