5 Most Important Things in Business Today
Wynn Resorts Ltd. (NASDAQ: WYNN) settled a multibillion lawsuit with a Japanese company. According to Reuters:
Wynn Resorts Ltd has agreed to pay $2.6 billion to settle a lawsuit brought by Japan’s Universal Entertainment Corp and its U.S. unit, ending a six-year old dispute that pitted casino mogul Steve Wynn against his former associate Kazuo Okada.
The size of the compensation was lower than market expectations and sent shares in Universal, a maker of Japanese-style slot machines and the operator of a casino in the Philippines, plunging 16 percent in Thursday trade in Tokyo.
The lawsuit relates to Wynn Resorts’ 2012 forced redemption of a stake held by Universal’s unit Aruze USA at a 30 percent discount after an internal investigation by former FBI director Louis Freeh alleged Okada had violated U.S. anti-corruption laws.
Tesla Inc.’s (NASDAQ: TSLA) Elon Musk said he believes trade between China and the United States has hurt the prospects of his company. According to Reuters:
Tesla Inc Chief Executive Elon Musk took to Twitter on Thursday to call on U.S. President Donald Trump to challenge China’s auto trade rules, which limit foreign ownership of Chinese ventures and impose steep tariffs on imported cars.
In a series of tweets aimed at the president, Musk said he was “against import duties in general, but the current rules make things very difficult. It’s like competing in an Olympic race wearing lead shoes.”
Toys “R” Us may close all of its U.S. stores. According to The Wall Street Journal:
Troubled toy chain Toys “R” Us Inc. is preparing to liquidate all of its U.S. stores and abandon efforts to restructure through the bankruptcy process, people familiar with the matter said, after a weak holiday season torpedoed plans to reorganize.
The big box retailer filed for chapter 11 protection in September with the hopes of reorganizing its roughly $5 billion debt load, revamping its stores and operations, and continuing as a mainstay toy business.
General Motors Co. (NYSE: GM) may have to pay a billion dollars to settle claims against it for faulty ignitions. According to The Wall Street Journal:
General Motors Co again faces the prospect of a potential $1 billion stock payout to address claims stemming from the auto giant’s ignition-switch crisis after a trust for the company’s bankruptcy estate renewed discussions with plaintiffs about a settlement.
The trust, tasked with compensating creditors of the “old GM,” is discussing a possible deal that previously fell apart, lawyers said during a Thursday hearing in a Manhattan federal bankruptcy court. Old GM is the term often used to describe the assets GM left behind in 2009 as part of its $50 billion government rescue and bankruptcy restructuring.
A deal, which isn’t guaranteed, could have GM paying the trust $1 billion in stock to address claims from accident victims and customers seeking recompense for declining vehicle values arising from faulty ignition switches.
Walt Disney Co. (NYSE: DIS) shareholders did not support a compensation deal for CEO Robert Iger. According to The Wall Street Journal:
In a rare rebuke of Walt Disney Co. leadership, shareholders on Thursday voted down a nonbinding endorsement of the compensation given to Chairman and Chief Executive Robert Iger following an increase in December.
About 52% of votes cast at the company’s annual meeting expressed displeasure with Mr. Iger’s new pay package. It was the first time a majority of votes were cast against such a proposal at Disney.