Genting Asks for Dismissal in Bahamas Casino Lawsuit
Genting Malaysia has filed for the dismissal of a lawsuit brought against it by Bahamas Casinos Resort World Bimini, maintaining that the claims lack merit. The company has strongly contested the allegations and pledged to vigorously defend its position in the case. This development follows Genting's earlier statement, labeling the complaint as baseless and without substance.
An aerial view of the Bahamas Resort World Bimini casino resort in the Bahamas. (Source: Bahamas Resort World Bimini)
LISTEN TO THIS ARTICLE:In a formal filing with the Malaysian stock exchange, Genting Malaysia explained its stance, asserting that the legal dispute falls under the purview of a shareholder disagreement. The lawsuit, which has drawn significant attention, revolves around accusations that Genting improperly transferred group liabilities to its subsidiaries operating in the Bahamas. Genting has assured its investors that it will provide updates as the situation evolves and additional material developments arise.
The lawsuit was initiated by the Capo family from Florida, who allege widespread fraudulent activities linked to Genting's control over BB Entertainment, a subsidiary involved in managing the Bahamas-based resort. The plaintiffs contend that Genting Americas, a division of Genting Malaysia, leveraged its influence over BB Entertainment to conceal fraudulent financial practices.
The claims assert that BB Entertainment has been used to mask an array of improper activities and has not distributed profits to RAV Bahamas Ltd., the Capo family's entity, as a partner in the venture. The lawsuit argues that financial mismanagement has resulted in the accumulation of hundreds of millions of dollars in what it describes as illegitimate debt.
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Billion Dollars in Debt
The accusations extend to Genting Americas' alleged actions, including creating significant liabilities tied to vague and poorly defined expense categories. According to the claims, these financial practices have led to nearly a billion dollars in debt linked to the resort on Bimini Island, despite the Capo family's assertion that much of the island's infrastructure had already been developed by RAV Bahamas Ltd. The plaintiffs allege that these debts were buried within consolidated financial statements to obscure the extent of the alleged fraudulent activities.
Additional claims in the lawsuit highlight Genting's alleged refusal to grant RAV Bahamas Ltd. access to critical financial records and its denial of requests for an independent audit of BB Entertainment. These actions, the Capo family argues, have undermined their efforts to obtain a clear understanding of the financial health and operations of the resort. They further allege that these practices have effectively nullified the value of RAV Bahamas Ltd.'s 20-acre land contribution to the project.
The lawsuit seeks $600 million in damages from Genting, representing the Capo family's claim for compensation over alleged financial and operational mismanagement. Genting has not publicly commented on the specifics of the allegations but continues to stand by its earlier position that the claims are unfounded.
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