The company’s US subsidiary is subject to a lawsuit filed RAV Bahamas, a company that owns a stake in a joint venture operating Resorts World Bimini
A newly filed lawsuit against a Genting Malaysia Berhad US-facing subsidiary accuses the company of fraud, seeking damages of more than $600 million.
Company Used as a Financial Wasteland
The new legal battle revolves around Resorts World Bimini (RWB) in the Bahamas and was recently filed by RAV Bahamas, a company that holds a 22% stake in BB Entertainment, a joint venture operating RWB. The legal action was filed with the US District Court in the Southern District of Florida earlier this month.
In its lawsuit, RAV Bahamas accused Genting’s US subsidiary, Genting Americas, of using the hotel and casino project and BB Entertainment as a “financial wasteland.” Moreover, the company was accused of engaging in coordinated and massive fraudulent actions.
RAV Bahamas contributed to the hotel and casino resort in the Bahamas by providing more than 20 acres of land. This land helped the RWB project while enabling the company to acquire a stake in the joint venture company, BB Entertainment.
Despite the good plans for profits and returns from its participation in the project, RAV Bahamas argued that it hasn’t received any returns on its contribution. “This lawsuit seeks the damages that Genting Americas’ continuing fraud has caused, which include, but are certainly not limited to, rendering RAV’s contribution to BB Entertainment (the 20 acres of land) entirely worthless,” RAV Bahamas claimed in its lawsuit.
Allegations About $1 Billion in Liabilities
According to RAV Bahamas, its efforts to gain access to financial data belonging to BB Entertainment have gone without success. The company also claimed that its requests for an independent audit into the joint venture have also faced rejections. “Genting Americas, at every turn, has deliberately kneecapped RAV’s efforts to obtain clarity into the financials, including denying RAV full access to BB Entertainment’s financial records and denying its requests for an independent audit,” explained RAV Bahamas.
“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,“
reads the lawsuit filed by RAV Bahamas
The plaintiff claimed that such actions suggest massive and coordinated fraud, considering that nearly $1 billion in debt is tied to a small island resort. Moreover, RAV Bahamas alleged that Genting Americas took deliberate action to conceal those liabilities.
The plaintiff explained that the $900 million in liabilities on BB Entertainment’s books represents a sum that is far beyond the estimated value of the resort itself. Finally, RAV Bahamas argued that through its actions, Genting Americas “effectively deprived RAV of the entire value of RAV’s over 20-acre contribution,” while at the same time RAV did not benefit from any returns from the project.
