By Jean Wright Monday, 28 March
With news that the Las Vegas Sands would be using more casino software in Singapore in the near future, shares gained some new momentum, even though the shares finished lower than the opening price. At the end of the day, NYSE: LVS were trading at 42.56, down 26 cents.
Unfortunately, an SEC investigation is still causing trouble for the casino software enterprise, after former Sands China CEO Steve Jacobs, made allegations in a lawsuit filed last fall, that the Sands used a “courier” to bring customers’ money into the United States. The allegations then fueled media speculation about potential money-laundering violations.
Sands China attorney Patricia Glaser, referring to Jacobs, said “this man lied to the court and said money was couriered”.
She said funds were transferred electronically between the company’s casinos through software for the benefit of customers and the transactions were regularly reported to authorities as required.
“This is a good, honourable business practice,” Glaser said.
According to the lawsuit Jacobs states that the Las Vegas Sands and Sands China are accused of breach of contract for failure to pay his stock options for the betting software company after he was fired, as well as for a breach of the implied covenant of good faith and fair dealing
In a counter filing, the Sands’ attorneys said, “plaintiff’s strategy appears to be to make incendiary allegations, for an in terrorem (threatening) effect, in an effort to exert undue pressure to resolve this case. Defendants have already suffered damages as a result of the negative press based solely on plaintiff’s allegations in the complaint and oppositions.”
Robin Farley of UBS said in a note that the Las Vegas Sands’ stock is now factoring in a significant downside risk from the SEC investigation.
“While it could be some time before a formal conclusion, near term, we do not expect any impact on day-to-day operations in Singapore or Las Vegas,” she wrote
She still believes the stock will rise to $51.00 in the near future.
Last April the Las Vegas Sands opened the Marina Bay Sands integrated resort in Singapore. The Marina Bay resort has only one competitor in the area and has received more than 11 million visitors since its opening.
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