Las Vegas Sands Corp., faced with paying a lawsuit judgment of USD 58.6 million to a Hong Kong businessman, told investors it hasn’t recorded any reserves or contingencies for the legal matter.
Why? The casino operator doesn’t think it will ever have to settle up.
„The company believes this potential loss is not probable or estimable,“ Las Vegas Sands said in a 10-Q filing with the Securities and Exchange Commission last month.
A Clark County District Court jury on May 24 awarded Richard Suen a USD 43.8 million verdict following a six-week trial. The trial judge tacked on USD 14.8 million in interest.
Suen said he was stiffed by the casino operator when he sought payment for helping the company win a Macau gaming license. Las Vegas Sands is appealing the verdict.
The company’s stance shouldn’t be a surprise. In its May 2007 10-Q, Las Vegas Sands told investors Suen’s chances of winning the lawsuit were „remote.“