Unprovoked Litigation vs Empire Resort

Casino operator Genting Malaysia Bhd said the lawsuit over the proposed merger of U.S.-based casino company Empire Resorts Inc. was "unprovoked" and that all respondents named in the lawsuit planned to "defend all claims set forth in it." The information was included in a filing with Bursa Malaysia on Thursday.

In August, Empire Resorts, which is in the red, said it had agreed to a merger deal to take the company private. Empire Resorts is the operator of Resorts World Catskill (pictured) in New York state.

Under the agreement, affiliates of Kien Huat Realty III, the family trust of businessman Lim Kok Thai, the controlling shareholder of Genting Group, will acquire all unissued shares in Empire Resort, which is not currently owned by Kien Huat or its affiliates, along with Genting Malaysia.

In October, a minority shareholder at Empire Resorts sued the company, alleging that its shares in the group were undervalued under the terms of the privatization bid.

In a filing on Thursday, Genting Malaysia confirmed that a class action was filed in the New York State Supreme Court on October 8, 2019, challenging the merger.

According to the complaint, the lawsuit alleges members of Empire Resort's board of directors violated fiduciary duties in connection with the negotiation and approval of the merger agreement. It also alleges that all parties "aided and abetted" Empire Resort's board of directors' alleged breaches of fiduciary duties. 홀짜게임

"The defendants deny all such allegations, believe the merger lawsuit is unprovoked, and plan to defend against all the claims set out there," Genting Malaysia said.

The casino operator previously defended his decision to invest in Empire Resort, saying he "thought it was a valuable investment based on a number of factors."

The company said in an August filing that the Malaysia-based company "will be positioned to provide deeper access to the New York market and the opportunity for both Genting Malaysia and Empire Resorts to compete more effectively in the current competitive gaming environment in the northeastern United States."