Date: November 27, 2024, 10:07h.

Last updated on: November 27, 2024, 10:15h.

Gaming industry leader Genting has requested a federal court in Florida to dismiss a $600 million lawsuit accusing the Malaysian company of fraud and false accounting.

The lawsuit was filed last month by RAV Bahamas, a partner of Genting in the development of Resorts World Bimini in the Bahamas.

RAV, which is owned by the Capo family of Florida, claims that they have not seen any return on investment due to Genting turning the project into a “financial wasteland” and burdening the venture with $885 million in debt.

Shareholder’s Dispute

Genting argues that the lawsuit should be dismissed as it is a shareholder dispute that should be resolved in the Bahamas according to the shareholders’ agreement, rather than in a US court. It also contends that the allegations in the complaint are time-barred as they involve fraud dating back to 2014.

Furthermore, the complaint does not assert that Genting Americas made a false statement or knew about any false claims, as per the motion to dismiss.

“The Complaint also baselessly claims that Genting Americas conspired with itself and interfered with its own alleged business relationship,” it continues. “Moreover, the Complaint does not establish a duty owed by Genting Americas that is adequate to support its claims of constructive fraud or negligence.”

‘Deliberately Kneecapped’

RAV began developing the northernmost section of North Bimini Island from 2002 onwards and by 2011, had completed the Bimini Bay resort.

In 2012, Genting persuaded RAV to collaborate on a casino project to further develop the resort. The two companies established BB Entertainment to manage and develop the venture.

RAV alleges that Genting has intentionally obstructed their efforts to gain clarity on the finances, including denying full access to BBE’s financial records and refusing requests for an independent audit.

RAV points out in its lawsuit that BBE’s $885 million debt exceeded the combined liabilities of Genting Malaysia and its around 150 subsidiaries.

“Only an extensive and coordinated fraud could unload nearly a billion dollars of debt on a small island resort, where RAV had already developed most of the significant infrastructure,” RAV stated in its lawsuit, while accusing Genting of using its “complex corporate structure, composed of numerous subsidiaries, to conceal its financial misconduct and confuse its fraud.”

Genting has dismissed the accusation as “baseless and without merit.”