“Following a finding of ‘unsuitability,’ the articles provide for redemption at ‘fair value’ of the shares held by unsuitable persons to protect the company’s gaming licenses. The company engaged an independent financial advisor to assist in the fair value calculation and concluded that a discount to the current trading price was appropriate because of restrictions on most of the shares, which are subject to the terms of an existing stockholder agreement,” the company said.
The casino-resort company, which operates the Wynn and Encore properties in Las Vegas, as well as Wynn Macau, said it asked Okada to resign from its board of directors and they also filed a lawsuit against him in Clark County District Court in Las Vegas in which they alleged breach of fiduciary duty as well as other counts.
The resignation and buying out of Okada was the end of a long legal battle between Okada and Wynn, which began in January when Okada became concerned about specific transactions made by the company, particularly a pledge by Wynn’s Macau subsidiary to give a donation of $135 million to the University of Macau. He then filed suit and demanded that Wynn open its books and records to him.