Asian American Entertainment sues Sheldon Adelson, LVS for $5b

    Asian American Entertainment has taken its long-running fight against Las Vegas Sands to the U.S. District Court of Nevada and is seeking $5 billion in compensation from Sheldon Adelson and two of Las Vegas Sands’ senior executives, William Weidner and David Friedman, Courthouse News reports, citing the filing.
    The report said the spat dates back to an agreement negotiated in 2001, following two meetings between Adelson and Dr. Shi-Shen Hao, chairman of Asian American.
    Under the accord, Asian American was to provide financial backing for LVS’s casino projects in Macau, while the U.S. operator would provide its expertise in running casinos. Asian American Entertainment, which lost out on its bid for a casino license, claims that it owns 72.5 percent and Las Vegas Sands 21.5 percent of the Sands’ operations in Macau, and that Adelson and Las Vegas Sands owe billions of dollars for its share of profits in the gaming enterprise.
     It also claims that Las Vegas Sands officials likely shared confidential business plans with Galaxy Entertainment, whose revised winning plan included $1.1 billion to develop the gaming resort that was a key element of the plaintiff’s own business plan.
    Asian American Entertainment seeks $5 billion in damages for misappropriation of trade secrets, conversion and breach of confidence, the report said.
    The two companies have two court cases pending in Macau. One brought by Asia Entertainment in the First Court is a lawsuit seeking damages of 72.5 percent of all profits for the 20 year subconcession period for breach of contract.
    A second was instituted by Sands in the Second Court to recognise an April 2009 Nevada Judgment. That judgement dismissed a case brought by Asia American in part and ordered it to be continued in part.
    The judgement said the action should continue regarding facts covered by a written contract up until 15 Jan 2002 and dismissed it regarding facts not covered by a written contract after that date because the statute of limitations for oral contracts is three years in Nevada and Asian American brought its case in 2007.
    The Macau court recognized this Judgment on 25 June.