Investor sues Wynn over UM donation

Japanese tycoon Kazuo Okada sued Wynn Resorts for access to financial records in a dispute with the US-based casino operator over the use of funds, which include a donation to the University of Macau.
According to Bloomberg, Okada, a Wynn vice-chairman, filed the complaint in state court in the US State of Nevada, seeking to force the company to produce spending records. He is also chairman of Universal Entertainment, Wynn’s biggest shareholder.
The 69-year-old businessman opposed Wynn Resorts’ HKD 1 billion pledge in July 2011 to the University of Macau Development Foundation (UMDF), according to the complaint.
In May last year Wynn Resorts’ local subsidiary, Wynn Macau, donated MOP 200 million to UMDF. The company has committed to donate MOP 80 million to UMDF every year until 2022.
Universal, a Tokyo-based pachinko machine maker, owns a 20 percent stake in Wynn Resorts, which also controls local casino Wynn Macau.
Okada said in a related regulatory filing he is seeking to protect his investments of USD 380 million (MOP 3 billion) in Wynn Resorts dating back to 2000.
According to the filings, last November Okada sought information regarding the pledge, the use of USD 30 million (MOP 240 million) one of his companies invested in Wynn in April 2002 and an amendment to a stockholders agreement with chairman and founder Stephen Wynn and ex-wife Elaine Wynn that followed the couple’s divorce.
 “Not only was the request summarily denied but, shockingly, Wynn Resorts asked for evidence that the USD 30 million investment had even occurred,” according to the filing.
Wynn gained 4.1 percent in New York trading. The shares gained 6.4 percent last year. Wynn Macau gained 6 cents to HKD 18.44 in Hong Kong trading.
Okada, a Hong Kong resident, is one of Wynn Resorts’ original investors.