Wynn Resorts to pay $2.6 billion to settle lawsuit with Japan's Universal
(Reuters) - Wynn Resorts Ltd <WYNN.O> has agreed to pay $2.6 billion to settle a lawsuit brought by Japan's Universal Entertainment Corp <6425.T> and its U.S. unit, ending a six-year old dispute that pitted casino mogul Steve Wynn against his former associate Kazuo Okada.
The lawsuit is related to Wynn Resorts' redemption of a stake held by Universal's unit Aruze USA, issuing a promissory note at a steep discount to the stock's trading price at the time.
Under the settlement, Wynn Resorts will pay a total $2.6 billion including the principal amount of the redemption note and interest owed by March 31, Universal Entertainment's law firm, Buckley Sandler LLP, said in a statement.
Universal's shares plunged 16 percent in early trade in Tokyo.
The settlement resolves all claims between Wynn Resorts, Universal and Aruze, its then directors and executives with respect to the redemption, Wynn Resorts said in a separate statement.
Wynn quit as CEO of Wynn Resorts last month, following claims he subjected women who worked for him to unwanted advances. Wynn has previously denied the accusations.
Okada last year lost his board position at Universal with the board accusing him of misappropriating $20 million in funds. Okada has previously denied this.
Okada was also ousted as director of a Hong Kong investment company that controls Universal Entertainment amid a rift with family members over money and control.
(Reporting by Rushil Dutta in Bengaluru; Additional reporting by Ritsuko Ando in Tokyo; Editing by Edwina Gibbs)
© Copyright Reuters Ltd. All rights reserved. The information contained in this news report may not be published, broadcast or otherwise distributed without the prior written authority of Reuters Ltd.