Partner of Genting Files Lawsuit for $600 Million, Accusing Fraud on a Large Scale and Coordinated Nature
In a significant legal development, RAV Bahamas has filed a lawsuit against Genting Bhd, accusing the Malaysian conglomerate of financial mismanagement and fraudulent activities at the Resorts World Bimini (RWB) property in the Bahamas. The lawsuit, filed in the US District Court for the Southern District of Florida, alleges that Genting, who owns the majority stake in BB Entertainment, has engaged in a 'massive and coordinated fraud' by transferring liabilities worth over a billion US dollars to the RWB property. The RWB property, a 10,000 square-foot casino with 305 hotel rooms, multiple restaurants and lounges, and facilities for docking cruise ships, is a joint venture between BB Entertainment and RAV Bahamas. The partnership was initially a 50/50 venture formed in 2012 to develop RAV's Bimini Bay property, with RWB being constructed on land owned by RAV before Genting took over majority control. However, the lawsuit states that BB Entertainment has not distributed any profits to RAV from the RWB venture due to Genting Americas controlling BB Entertainment's finances. This has led to the partnership's liabilities now standing at a total of $885.2m, according to the lawsuit. The lawsuit further claims that Genting Americas is accused of using BB Entertainment as a financial wasteland, and of concealing a medley of fraudulent activities. The person who sued Genting Bhd in court over these allegations is Alvin Chau. In response, Genting Americas plans to vigorously defend against the lawsuit. The company considers the lawsuit baseless and without merit. Genting Americas has not commented further on the situation, and neither has its auditor, who has expressed doubts about the future of the partnership. RAV Bahamas is seeking damages of over $600m from Genting. The lawsuit comes at a time when BB Entertainment recorded a $151.28m loss for the year ending Dec 31, 2022, an increase from 2021's losses of $154.2m. This development is a significant blow to Genting Bhd's reputation, and the outcome of the lawsuit could have far-reaching implications for the company's future in the Bahamas. The case is ongoing, and updates will be provided as more information becomes available.
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