Kazuo Okada, Japan’s recognized pachinko king, filed a lawsuit in the Tokyo District Court this week against the world-famous casino operator Wynn Resorts, seeking damages to the tune of 11 billion yen (approx. $140 million). Steve Wynn, co-founder, chairman, and CEO of Wynn Resorts, and Okada were formerly business partners and close friends, but claims of violating U.S. anti-corruption laws have resulted in bitter accusations of misconduct from both sides.
Okada’s company, Universal Entertainment Corp., is seeking repayment for the damages to share price and business reputation caused by Wynn’s removal of Okada as a board member, and revoking his $2.77 billion in shares. In a statement from Universal Entertainment, they say that Steve Wynn’s actions in this case show that he is not above fraud, deception, theft, and betrayal when it comes to controlling his gambling enterprises.
This is only the latest in a series of back-and-forth lawsuits between the moguls and their companies. Okada has moved forward on his plans to build a $2 billion casino resort in the Philippines, but Wynn refused to support the project because it would compete with his own businesses in the Southeast Asian region. Wynn then sued Okada in the U.S. state of Nevada for violating his duties as a trustee. In response, Universal countersued for a suspicious donation from Wynn Resorts to the University of Macau, which is now under investigation for possible corruption. With all the other things going on in the world, it’s always refreshing to see two men, each with net worths of billions of dollars, using the court systems of not just one country, but two, in order to fight like school children.
[via Business Inquirer]
Comments Off on JDP Startup Corner: Pros & Cons of Working with a Partner in Japan