A lawsuit against the Las Vegas Sands Corp. has gone to trial in Macau, after many twists and turns over almost two decades.
The plaintiff, Asia American Entertainment Corp. (AAEC), is seeking billions in compensation for what it claims was a breach of contract by the Sands Corp.
In 2001, Asia American worked with the Sands to enter the lucrative Macau market, and submitted a joint bid in the territory. Then Asia American’s founder, Taiwanese businessman Marshall Hao, fell out with the Sands founder Sheldon Adelson. At that point, the U.S.-based company partnered with Galaxy Casino SA before being going solo via a subconcession arrangement spun off from the Galaxy license.
Ever since, Hao has been in courts in the U.S. and Macau trying to get what he says is his fair share of the spoils. A 2007 lawsuit filed in the U.S. was dismissed on legal technicalities and a judge’s finding that the statute of limitations had passed. The company then sought justice in Macau with a 2012 lawsuit that has been in the pipeline ever since. As Reuters reports, a trial was scheduled to start June 16.
AAEC wants damages of up to 70 percent of Sands’ profits in Macau from 2004 through 2022. That’s approximately $12 billion, according to Reuters.
Hao told Reuters, “Asian American has been winning all major legal battles in the Macau lawsuit since we filed it in 2012. … We are confident.”
Sands replied that the lawsuit “has no merit.”
In 2013, Las Vegas Sands was forced to pay $70 million to Richard Suen, who also claimed to have helped the company obtain the Macau license, and LVS refused to pay him the agreed upon fee.
