- Lawsuit facing Las Vegas Sands Corp postponed to September 2020
- AAEC, the complainant, moved to court to request the extension
- The news comes during LVS’s third-quarter earnings call that co-founder and chairman, Sheldon Adelson attended
A $12 billion lawsuit filed by Asian American Entertainment Corporation (AAEC), against Las Vegas Sands Corp has been moved to September 2020.
AAEC $12bln Lawsuit Postponed to 2020
A filing by the Las Vegas Sands Corp indicated that a MOP96.4 billion (US$12 billion) damages lawsuit lodged against them by Asian American Entertainment Corporation (AAEC), Limited will be heard on September 16, 2020.
Initially, the case was scheduled to be heard on September 12, 2019, at the Court of First Instance (TJB) but AAEC’s request saw the trial date moved to next year. The expected trial date was announced during the release of Las Vegas Sands’ third-quarter results.
The case pitting the two companies sees Asian American Entertainment Corp (AAEC) claim compensation for the damages incurred due to an alleged breach of agreement by LVS following a successful joint Macau license acquisition bid they won in 2002. However, LVS ditched AAEC for Galaxy, a move that prompted Taiwanese Marshall Hao Shi-sheng to file the lawsuit.
In July 2019, AAEC moved to court with a request to raise the amount of the claim to around $12 billion. They argue that the adjusted figure represented the profits they lost from 2004 to 2018. The request that also included a claim for profits extending to 2022 was accepted but LVS appealed the decision on September 17, 2019, with the court also accepting the appeal.
In its statement, Sands also noted that AAEC had moved to court to request that the trial be rescheduled for September 2020 from the initial date of September 12 this year. The group said:
“The Macau action is in a preliminary stage and management has determined that based on proceedings to date, it is currently unable to determine the probability of the outcome of this matter or the range of reasonably possible loss, if any.”
The group also said that: “The company intends to defend this matter vigorously.”
Las Vegas Sands to expand in Japan with an Integrated Resort
In the same conference that saw LVS announce their third-quarter earnings, President Goldstein Said that the cost of building their anticipated integrated resort in Japan stood at $10 billion to $12 billion. This will see the project become the most expensive project in the company’s history.
Sheldon Adelson, chairman, and CEO of LVS was present at the earnings call, which was his first for the year, said that the return on invested capital (ROIC) in Japan was 20%. Mr. Adelson, 86, was appearing for the first time after undergoing non-Hodgkin lymphoma treatment earlier in the year.
The billionaire didn’t say much about his condition but told analysts that he felt good. Mr. Adelson last attended an earnings call in October 2018. “I deeply appreciate the well wishes and everyone who took the time to reach out to me,” he added. “It certainly means a lot.”
Investors had already started raising concerns about the billionaire’s health but his participation in the earnings call quelled them.
Image credit: apnews.com