Wynn Resorts settles legal dispute with Universal for $2.4 billion

U.S.-based Wynn Resorts has ended its long running legal battle with Universal Entertainment by agreeing to pay a settlement of $2.4 billion.

The settlement is part of a battle between Wynn Resorts and Universal founder Kazuo Okada, who was an early investor and board member of Wynn but was ousted after a falling out with founder Steve Wynn.

In 2012, Mr Okada was forced to give up his shares and his place on the Wynn Board in return for a redemption note of $1.94 billion, which was at a 30 percent discount to the market value at the time.

Wynn had accused Okada of making “secret plans” to compete with its casino in Macau and bribing gaming officials in the Philippines, to which he denied.

Under the settlement agreement, Wynn will pay Universal and its subsidiary Aruze USA the $1.94 billion principal amount of the note plus an additional $464 million.

The settlement will see all parties dismiss all litigation between Universal Entertainment and Aruze USA, and Wynn Resorts, its then-directors and executives with respect to the redemption.

The settlement agreement also puts an end to claims brought by Universal Entertainment and Aruze USA against Wynn Macau in Macau.

It is understood that Okada is not party to the settlement, as he was pushed out of his own empire last year.