Jim Chanos Asks Court to Dismiss Steve Wynn's Slander Case

Jim Chanos Asks Court to Dismiss Steve Wynn's Slander Case
Jim Chanos photo via Insider Monkey (CC BY-ND 2.0)

Jim Chanos, hedge fund manager and founder of Kynikos Associates filed a motion to dismiss the slander case filed against him by Wynn Resorts, Limited (NASDAQ:WYNN) and its chairman Steve Wynn.

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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.

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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

2014 11-19 Stephen Wynn & Wynn Resorts v James Chanos – Reply in Support of Defendant Jim Chanos Motion to… by Sam E. Antar

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Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.
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