Las Vegas Sands faces new case over investor stock losses


Securities attorneys will take another shot at top officers and the board of directors Las Vegas Sands Corp.

On Friday, a new case was filed in Clark County District Court against the board over the losses investors suffered when the stock price dropped precipitously in late 2008. The complaint contends that the company's ambitious spending caused its finances to wobble, which brought down the stock price, while the recession and the severe problems experienced by financial institutions at the time merely contributed the decline.

Las Vegas Sands in the past has denied that it deceived investors.

Three previous cases were combined into one, but dismissed in November 2009. Another case is now moving through federal court.

The latest case is styled as a shareholder derivative action. Under this state law procedure, a shareholder, in this case Ernest Kleinschmidt, takes it upon himself to sue on behalf of the company after a demand that insiders take action is turned down.

Contact reporter Tim O'Reiley at toreiley@reviewjournal.com or 702-387-5290.

 

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