Genting Malaysia has filed a motion to dismiss an Amended Complaint filed against it by a key partner in its Bahamas casino-resort, Resorts World Bimini (RWB), arguing that the complaint only repeats previously dismissed allegations.
In a company announcement on the Malaysian Bourse, Genting said it filed the motion with the United States District Court, Southern District of Florida on 12 September to dismiss the Amended Complaint filed by RAV Bahamas Ltd in July.
“The Amended Complaint repeats the previous allegations and does not introduce any new material factual elements,” the company stated. “[Genting] maintains its position that the Amended Complaint is baseless and without merit and will continue to vigorously defend against these claims.”
The latest development come after RAV’s initial lawsuit was dismissed by the US District Court on 1 July after agreeing with Genting’s position that the situation was “merely a shareholders’ dispute” and that allegations levelled were “baseless and without merit”. The court did, however, provide RAV with one final opportunity to submit an Amended Complaint before tossing the lawsuit out for good.
RAV Bahamas, which owns 22% of RWB operator BB Entertainment, filed a lawsuit with the court in early October last year alleging Genting – owner of a majority 78% – has turned the IR into a “financial wasteland” by dumping onto it almost a billion dollars in debt.
The lawsuit described Genting’s alleged actions as “a massive and co-ordinated fraud” that has left assets contributed to RWB by RAV Bahamas as “essentially worthless”. It also accused Genting of “depriving” the joint venture of profits and said the Malaysian firm “has deliberately kneecapped” its efforts to dig deeper by denying full access to the books.
Genting Malaysia described the claim as “malicious and baseless” and accused RAV of seeking to extract an “exorbitant payment”.
BB Entertainment was formed as a 50/50 joint venture in 2012 to further develop RAV’s existing Bimini Bay, with RAV contributing the 20 acres of land upon which RWB now sits before Genting assumed majority control in 2015. RWB comprises a 10,000 square-foot casino, 305 hotel rooms, restaurants, lounges and a jetty to dock cruise ships.
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