A Nevada judge has ruled that a civil lawsuit between Wynn Resorts and Japanese billionaire Kazuo Okada can proceed, rejecting a U.S. government request to delay it another six months to protect the identity of witnesses in a criminal probe the Justice Department is conducting into Okada’s business in the Philippines.
In requesting a third six-month “stay of discovery,” a Department of Justice attorney said allowing the civil case to proceed risked causing “irreparable harm if the witnesses’ identities are revealed”.
Clark County District Judge Elizabeth Gonzales, who granted the two previous suspensions said the government had already been given enough time.
“I’m tired of waiting. It’s been a year,” Gonzales said, adding that she hoped her ruling would prompt the government to accelerate its criminal investigation.
She did, however, grant the government’s request to have the names of anyone cooperating with the investigation redacted in court files.
Okada and Wynn Chairman Steve Wynn have been locked in a legal battle dating back to 2012, when the former business partners and founders of Wynn Resorts fell out over Okada’s pursuit of a resort casino in Manila.
Wynn ousted Okada from the board of directors and forcibly redeemed his 20 percent stake in the company at a discount, alleging he had made improper gifts to Philippine government officials in the form of complimentary stays at Wynn Macau in order to advance his planned $2 billion Philippines project. Wynn’s lawsuit against Okada centers on allegations that Okada breached his fiduciary duties as a director in making those payments.
Okada has denied any wrongdoing and filed a counterclaim to nullify the share redemption.
The Justice Department and its Philippine counterpart are also investigating allegations that affiliates of Okada’s Tokyo-based Universal Entertainment paid $40 million in bribes to a politically connected consultant in the Philippines.
Universal has filed a defamation suit against Reuters in Tokyo for its reporting on the alleged payments and more recently filed a criminal complaint against Wynn Resorts and Steve Wynn alleging defamation. An earlier civil defamation suit was dismissed by a Tokyo court last year. Universal is appealing that ruling.
In a statement e-mailed to Reuters, Wynn said the fresh complaint was an attempt by Okada “to create a distraction from the investigations pending against him”.
