Okada to argue again for Wynn Resorts books access

Clark County District Judge Elizabeth Gonzalez in Las Vegas, according to a notice filed in court, scheduled a hearing for October 2 on arguments whether Okada’s request for documents, including ones regarding Wynn Resorts’ dealings with Macau officials going back as far as 2000 and the company’s use of us$ 120 million he invested in 2002, is reasonable.

The judge at a hearing in June deferred a decision until Wynn Resorts’ lawyers had a chance to question Okada about the purpose of his request. Its lawyers have argued that Okada is using the petition as “back-door discovery” to collect evidence to use in Wynn Resorts’ lawsuit against him, in which the two sides can’t yet request documents.

Okada will appear September 18 in Las Vegas for a deposition by Wynn Resorts’ lawyers, according to the notice filed last week by the casino operator’s lawyers. Wynn Resorts will have 10 days after they question Okada to supplement their opposition to his request, according to the filing.

‘VIP Gamblers’
Wynn Resorts sued Okada on February 19, saying he breached his fiduciary duty by making improper payments to gaming regulators in the Philippines. Okada is developing two casinos and three hotels in Manila and seeks to lure “high-limit, VIP gamblers” from China in direct competition with Wynn’s casino in Macau, according to the complaint.

Okada held the largest single stake in Wynn Resorts through his Tokyo-based Universal Entertainment until February. Then, in an escalating battle with CEO Stephen Wynn, his 20 percent stake in Wynn Resorts was forcibly redeemed because, the company said, he was “unsuitable.”

Okada sought a court order in January that, as a director, he was entitled to inspect Wynn Resorts’ books and records regarding its us$ 130 million pledge last year to the University of Macau, which Okada says he opposed.

Gonzalez in March ordered Wynn Resorts to produce only two more pages of documents to Okada. In his renewed request, Okada seeks documents from 2000 through 2002 regarding entertainment of and contacts with Macau government officials, as well as documents explaining the company’s use of us$ 120 million he invested in 2002.