A Nevada state court rejected a bid by Wynn Resorts to escape trial over a dispute with former shareholder Kazuo Okada.
US.- Nevada District Court Judge Elizabeth Gonzalez has rejected Wynn Resorts Ltd’s bid to avoid a jury trial over Kazuo Okada, a former shareholder. After the state court’s ruling, the case is set to go to trial next April, despite the casino operator’s attempts to evade it.
According to Mr Okada and Universal Entertainment Corp (which held Wynn’s shares), the board acted on Mr Wynn’s orders when it decided to vote against him and redeem his holding. Therefore, they argue that the board’s decision wasn’t shielded from challenges by the state’s “business judgement” rule.
Wynn alleged that the decision made by the Nevada Supreme Court in July, which denied Mr Okada and Universal Entertainment Corp access to the operator’s board communications with its legal advisors “made it clear that courts could not question a board’s decision as long as it was made following proper procedures,” Bloomberg reports.
Judge Gonzales explained in her decision that the state’s “business judgment” rule protects Wynn’s individual board members, other than Steve and Elaine Wynn, from personal liability, but not the company itself. Therefore, the case is set to go to court in April 2018.