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Wynn Defends Ouster Of Key Investor .

Publication Date: 
February 22, 2012
Source: 
The Wall Street Journal
Author: 
Alexandra Berzon and Kate O'Keeffe

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.