After Wynn Resorts (WYNN) bought out the company's co-founder and largest shareholder over the weekend, Kazuo Okada says he will take legal action to block the board’s action, according to The Wall Street Journal.
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The Wynn board bought the $2.77 billion share at a steep 30% discount following a meeting in Las Vegas where it accused Okada of making improper payments to gambling regulators in the Philippines.
The company had conducted an internal investigation led by a former FBI director, who found him to be “unsuitable” based on the company’s own regulations.
A person familiar with the matter told the Journal that attorneys for Okada will file a temporary restraining order against Wynn Resorts and possibly the board on Tuesday in an effort to stop and invalidate the share redemption.
Okada will likely argue he wasn’t given a fair chance to present his case and might even say he was targeted because he is a whistleblower, having raised concerns in January about a $135 million donation made by Wynn to a university in Macau, where it is seeking approval for a new casino.