Las Vegas-based hotel and casino operator Wynn Resorts Ltd. said March 8 that it agreed to pay $2.4 billion in settlement to end its dispute with Universal Entertainment Corp. and Aruze USA Inc., which dates back to 2012.
Wynn Resorts ousted Kazuo Okada, founder of Universal Entertainment and Aruze USA, from its board in February 2012 after accusing him of planning to forcibly redeem his $2.7 billion stake in Wynn Resorts for a discounted price of $1.9 billion over 10 years. Aruze USA also sought a restraining order against Wynn Resorts around the same time to protect its stake in the company.
In October 2012, A Nevada state court judge rejected Okada's request to reverse a redemption of his stake in Wynn Resorts.
Under the settlement terms, Wynn Resorts will pay $1.94 billion for the principal amount of redemption note that it previously issued to Aruze, plus $463.6 million in interest. Aruze USA agreed not to assert any claims or rights under the amended stockholders agreement among Aruze USA, Elaine Wynn, and Wynn Resorts' former CEO and Chairman Steve Wynn, who resigned in February amid sexual harassment allegations against him.
