Wednesday, December 11, 2024

Genting Wants $600M Resorts World Bimini Resorts ‘False Accounting’ Suit Tossed


Posted on: November 27, 2024, 10:07h. 

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

Gaming giant Genting has asked a federal court in Florida to dismiss a $600 million lawsuit that accuses the Malaysian operator of fraud and false accounting.

Genting Americas, RAV Bahamas, Resorts World Bimini, BB Entertainment
RAV Bahamas, a partner in Resorts World Bimini, above, claims that Genting dumped $885 million worth of debt on the project. Genting has called those claims “baseless and without merit.” (Image: Resorts World)

The suit was filed last month by RAV Bahamas, which partnered with Genting on the development of Resorts World Bimini in the Bahamas.

RAV, owned by the Capo family of Florida, claims it has never seen any return on investment because Genting has turned the project into a “financial wasteland” and saddled the venture with $885 million in debt.

Shareholder’s Dispute

Genting says the case should be dismissed because it is a shareholder’s dispute that should be dealt with in the Bahamas in accordance with the shareholders’ agreement, rather than in a US court. It also argues the claims made in the complaint are time-barred because they allege fraud beginning in 2014.

Moreover, the complaint fails to allege that Genting Americas made a false statement or that it knew any alleged claims were untrue, according to the motion to dismiss.

“The Complaint also makes the legally unsupportable claim that Genting Americas conspired with itself and tortiously interfered with its own alleged business relationship,” it continues.  “Additionally, the Complaint fails to allege a duty owed by Genting Americas sufficient to sustain its constructive fraud or negligence claims.”

‘Deliberately Kneecapped’

RAV began to develop the northernmost portion of North Bimini Island from 2002 onwards, and by 2011, had constructed the Bimini Bay resort.

In 2012, Genting convinced RAV to team up on a casino project that would further develop the resort. The two companies formed BB Entertainment to own and develop the venture.

RAV alleges that Genting has “deliberately kneecapped” its efforts to obtain clarity into the financials, including denying RAV full access to BBE’s financial records, and denying its requests for an independent audit.

RAV notes in its lawsuit that BBE’s $885 million debt was greater than the combined liabilities of Genting Malaysia and its approximately 150 subsidiaries.

“Only a massive and coordinated fraud could dump nearly a billion dollars of debt on a small island resort, where RAV had already developed most of the significant infrastructure,” RAV claimed in its lawsuit, adding that Genting’s “opaque corporate structure, comprised of layer-upon-layer of subsidiaries, helps [it] conceal its financial improprieties and obfuscate its fraud.”

Genting has called the allegation “baseless and without merit.”



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