Wynn Defends Ouster Of Key Investor .
Professor Joseph A. Grundfest was briefly quoted in the following Wall Street Journal article by Alexandra Berzon and Kate O'Keeffe on Wynn Resorts' decision to forcibly buy out a major shareholder.
Forcibly buying out a major shareholder is nearly impossible in most companies, but Wynn Resorts Ltd. said on Tuesday it took that unusual step because of a company rule and the highly regulated nature of the gambling industry.
Bob Miller, a former Nevada governor who sits on the board, said during a conference call that forcibly redeeming Japanese gambling tycoon Kazuo Okada's 20% stake was necessary to prevent putting the company's license to operate in Las Vegas and Macau "under a cloud of scrutiny."
"I'll give you a one liner: Can you spell litigation?" said Joseph Grundfest, a professor of law and business at Stanford University and former Securities and Exchange Commissioner.