Posted on: October 18, 2024, 02:10h.
Last updated on: October 18, 2024, 02:10h.
A Macau appeals court has dismissed a bid by Asian American Entertainment (AAE) to revive its longstanding multibillion-dollar lawsuit against Las Vegas Sands (LVS) over a business agreement that dissolved unhappily almost 25 years ago.
AAE, a company owned by Taiwanese businessman Marshall Hao Shi-sheng, claims it is owed US$7.5 billion to US$12 billion by the US casino giant in what must be the biggest breach of contract case in corporate history.
Partnership Breaks Down
The dispute arises from a breakdown in relations between the two parties in 2001, a year after they submitted a joint bid for a casino license in the newly liberalized Macau gaming market.
LVS later submitted a revised bid in partnership with Galaxy Entertainment for what became the Sands Macao. LVS’s subsequent Macau operations made it the richest casino operator in the world, and AAE believes it deserves a slice of the pie.
AAE has argued that without its early guidance, LVS would have struggled to negotiate the complex licensing process and cultural nuances in Macau.
The US$7.5 billion to US$12 billion claim is based on 70 percent of LVS profits in Macau from when it started trading in 2004 to when the license expired last year.
But LVS has claimed it was AAE that broke off the relationship. Meanwhile, former Macau regulators testified that LVS was a highly desirable applicant, and its experience as a Las Vegas operator outweighed any contribution that might have been made by local licensing partners
‘Distorted Facts’
The lower court ruled in May 2022 that AAE had “distorted the facts … seriously overestimated the amount of compensation” and entered into the litigation “in bad faith.”
The appeals court judgment is yet to be published. AAE still could take the case to Macau’s highest court, the Court of Final Appeal.
While AAE’s lawyer, Jorge Menezes, would not elaborate about the details of the court’s determination this week, he told GGRAsia his client was prepared to “take the fight to the very end.”
