Wynn Resorts to answer to the courts over Everett deal
An ongoing battle between the Massachusetts Gaming Commission (MGC) and FBT Everett Realty LLC is digging up some dirt. The battle between the two is worth millions of dollars and the MGC has now brought in Wynn Resorts as a defendant to help support its case. If the MGC loses, it says Wynn will have to pay.
Everett sold to Wynn over 30 acres of land for its Encore Boston Harbor Complex. The deal was finally struck for around $35 million, but this was substantially less than the initial $75-million price tag. Everett has claimed that the MGC coerced Wynn into pushing for a huge discount over its belief that Everett was covering up involvement in the deal by Charles Lightbody, a convicted felon. Everett agreed to the discount, against its better judgment, and Lightbody and Everett were eventually cleared of any improprieties.
Now, Everett wants the full original amount and have launched a lawsuit against the MGC in an effort to receive the payment. A Superior Court judge has already dismissed several claims made by Everett, but has allowed this suit to continue. In order to support its case, on July 5 the MGC called on Wynn Resorts in an effort to recover any funds from the company if it becomes necessary. The MGC argues that if Wynn is found liable for the price reduction and doesn't pay, it will have been unjustly enriched.
The Everett suit is baseless, according to representatives from both the MGC and Wynn. A Wynn spokesman said that the commission's order to call in Wynn is a "common procedural occurrence." The MGC said that it is only trying to protect its backside in case Everett actually wins.