The Las Vegas Sands Corp. has agreed to pay $300m to settle a lawsuit from investors who accused the casino operator of violating state and federal securities laws.
The company agreed to an agreement to settle the case, according to court documents.
In January, the state of Nevada, along with the U.S. Securities and Exchange Commission and the Justice Department, accused Sands of defrauding investors by lying to investors and making false statements about the number of slots it was offering.
Sands settled the case with the state on Tuesday.
It agreed to make a $1.9bn donation to the state, which is responsible for managing casinos, casinos and hotels in the state.
The donation would go towards the Nevada Department of Gaming and Entertainment.
The deal was negotiated between Sands and the state’s attorney general’s office, the Las Vegas Review-Journal reported.
The state had sought to have the case dismissed, saying it had not met its burden of proof.
The Nevada Gaming Commission, which oversees the state lottery, has said the settlement did not breach its fiduciary duty.
A Las Vegas native, Sands said in a statement that the settlement was about more than the money.
“The settlement resolves a matter that we believe has been very important for our customers and shareholders, our employees and our partners,” Sands said.
“We look forward to continuing to operate in Nevada for years to come.”
The settlement also includes an amendment to the casino’s lease agreement, allowing it to operate for 20 more years.
It also extends Sands’ current operating agreement with the company until the end of 2019.SANDSTONES AGENT GENERAL: “THE BOTTOM LINE IS THAT SANDSTONE CANNOT DO ANYTHING FOR YOU IF YOU DO NOT PAY THE COST OF THE LAW”In a statement, the company said it “fully intends to honor the terms of the settlement agreement”.
The settlement “does not change or modify any of the matters discussed in the settlement,” the company added.
The casino operator was already subject to an investigation by the state attorney general in 2014 over its alleged marketing tactics, including misleading investors about its slot-opening strategy.
In February 2016, the regulator filed a complaint alleging that Sands had “unfairly and systematically deceived, misappropriated and misappropriat[ed]” $6.5bn from investors and the public.
Investors were told the casino had more slots than it actually had, but it only had 5,000 slots in the entire state of California.
It was later revealed that Sands was only able to offer 4,000 slot machines at the Las, the same number of machines it had advertised as it was promised.
The state said in court documents that the $6bn was a “deliberate, malicious and fraudulent deception” and that it was seeking an investigation into the matter.
A spokesperson for the attorney general, David Rosenblum, said the state was not seeking to recover any of Sands’ profits from the fraud.