Wynn (WYNN) Updates on Okada Situation; NGCB Says Claims are 'Unfounded'

February 4, 2013 9:04 AM EST Send to a Friend
Wynn Resorts, Limited (Nasdaq: WYNN) reported three positive recent developments for the Company and its shareholders in combating the ongoing smear campaign against Wynn Resorts by Kazuo Okada.

First, the Nevada Gaming Control Board has informed Wynn Resorts that it has concluded its investigation of allegations made by Okada against Wynn Resorts regarding an allegedly improper donation made to the University of Macau by Wynn Macau Ltd., and determined that Okada’s allegations are unfounded.

Second, the United States District Court of Nevada granted Wynn Resorts’ motion to dismiss a shareholder derivative action against the Company and members of its Board of Directors based on the Macau donation. The Court ruled there was insufficient legal basis for the case to proceed.

Third, Institutional Shareholder Services Inc. (“ISS”), a leading proxy advisory firm, has issued a report recommending that shareholders of Wynn Resorts vote to remove Okada from the Board of Wynn Resorts at a special meeting of shareholders to be held on February 22. Okada was previously deemed unsuitable by the Wynn Resorts Board after a lengthy investigation by former FBI Director Louis J. Freeh uncovered evidence of improper conduct by Okada and affiliated entities in violation of anti-corruption laws in their dealings with Philippine officials.

In its report, ISS concluded, “In light of the material risk that Okada's directorship poses to the Company's ability to receive gaming licenses in new jurisdictions and maintain its licenses for current ones, ISS recommends that shareholders vote FOR the removal of Mr. Okada as a director of the Company.”

The Company stated, “We are deeply gratified that Nevada gaming regulators have rejected Mr. Okada's baseless allegations against our Company, that a federal court has dismissed the complaint against our Directors and that a leading proxy advisory firm is recommending Mr. Okada's removal from our Board. Mr. Okada is an unsuitable person, and we are seeking to remove him from the Board of Directors of Wynn Resorts to protect the interests of the Company and our shareholders. We are confident our shareholders understand the importance of removing him on February 22.”


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