Okada to Take Legal Action Against Wynn Resorts

After Wynn Resorts (NASDAQ: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.

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.