Published on: October 18, 2024, 02:10h.
Last updated on: October 18, 2024, 02:10h.
A court in Macau has rejected a bid by Asian American Entertainment (AAE) to revive its long-running lawsuit against Las Vegas Sands (LVS) over a business deal that ended nearly 25 years ago.
Asian American Entertainment, owned by Marshall Hao Shi-sheng, alleges that Las Vegas Sands owes it between US$7.5 billion and US$12 billion, marking one of the largest breach of contract cases in corporate history.
Dispute Origins
The disagreement stems from a fallout between the two parties in 2001, following a joint bid for a casino license in Macau’s newly opened gaming market.
LVS subsequently partnered with Galaxy Entertainment on a revised bid for what later became the Sands Macao. This venture made LVS one of the richest casino operators globally, with AAE claiming a share of the profits.
AAE argues that its early guidance was crucial for LVS to navigate the complex licensing process and cultural intricacies in Macau.
The claim of US$7.5 billion to US$12 billion is based on 70% of LVS profits in Macau from 2004 until the license expiration last year.
However, LVS contends that it was AAE who terminated the partnership. Former Macau regulators testified in favor of LVS, stating its experience as a Las Vegas operator outweighed any contributions from local partners.
Legal Proceedings
In May 2022, a lower court ruled that AAE had misrepresented the facts and exaggerated the compensation amount, acting in bad faith.
The verdict of the appeals court is pending publication, and AAE may potentially appeal to Macau’s Court of Final Appeal.
AAE’s lawyer, Jorge Menezes, affirmed their readiness to pursue the case relentlessly, although specifics of the recent court decision were not disclosed.