Genting Group agreed to pay $12 million to settle a class-action lawsuit in the U.S. that said the company pressured shareholders to accept a buyout of Empire Resorts.
Bloomberg Law reports that the case also included former Empire board members and awards $3 million in legal fees. The news comes from court filings made in a Delaware court on Tuesday.
The investors had claimed that the $9.74 a share transaction in 2019 was the result of pressure from the Malaysian operator and its affiliates.
The Malaysian company announced in August 2019 that it planned to take the lossmaking Empire private. Under the terms of the agreement, Genting acquired 13.2 million shares in Empire from its single largest shareholder, Kien Huat Realty III for $128.6 million. The 13.2 million shares represent around 46 percent of Empire’s common stock.
Empire operates Resorts World Catskills.
