Wynn Resorts manipulated the transcript of Jim Chanos’ statement
Arnold & Porter LLP, the law firm representing Jim Chanos emphasized in the motion that Wynn Resorts, Limited (NASDAQ:WYNN) and Mr. Wynn submitted a “cut-and-paste manipulation of the transcript” instead of the exact words spoken by the hedge fund manager.
Electron Capital Partners' flagship Electron Global Fund returned 5.1% in the first quarter of 2021, outperforming its benchmark, the MSCI World Utilities Index by 5.2%. Q1 2021 hedge fund letters, conferences and more According to a copy of the fund's first-quarter letter to investors, the average net exposure during the quarter was 43.0%. At the Read More
Mr. Wynn and his company substituted the word “not” for “go” to mis-characterize the substance of Mr. Chanos’ comment in the complaint. The court should reject their tactics, according to the law firm.
Arnold & Porter LLP pointed out that Mr. Chanos never said of implied that Wynn Resorts, Limited (NASDAQ:WYNN) or its chairman violated the U.S. federal Corrupt Practices Act (FCPA).
According to the law firm, Jim Chanos merely responded to a question from the moderator that he sold his stake in Macau casino operators because of the risk he perceived at that time under the FCPA and other aspects of how business is done in China.
Wynn Resorts admitted risks of FCPA violations
The law firm pointed out that the statement of Jim Chanos was” not defamatory on its face and does not imply a factual accusation that Wynn Resorts, Limited (NASDAQ:WYNN) violated the FCPA. Arnold & Porter LLP added that the statement of Mr. Chanos was non-actionable given his historical opinion of investment risk.
Furthermore, the law firm explained that even if the hedge fund managers’ historical opinion of investment risk can be considered a factual assertion, Wynn Resorts, Limited (NASDAQ:WYNN) have not shown and cannot show that the assessment of Mr. Chanos was false.
According to the law firm, the company “admitted and described the risks of FCPA violations” on its Form 10-K annual report with the Securities and Exchange Commission (SEC).
The law firm said the slander case against Jim Chanos was meritless and should be dismissed by the court since Wynn Resorts, Limited (NASDAQ:WYNN) and Mr. Wynn failed to identify a defamatory statement by Mr. Chanos. They also failed to make any allegations that his actual statement was a factual assertion and made with malice.
H/T Sam Antar