According to the Las Vegas Review Journal, a Clark Country judge refused to dismiss a wrongful termination lawsuit filed by a former chief executive officer of Sands China, the subsidiary of Las Vegas Sands in Nevada.
Steve Jacobs claimed the company wrongfully terminated his contract and that Sheldon Adelson, billionaire founder of Sands, made repeated and outrageous demands.
The defendants attorney failed to explain Las Vegas Sands practice of assisting casino customers with their movement of funds in their gambling accounts between Las Vegas and Macau Sands. Jacobs claimed a series of transfers totaling $68 million was illegal and unethical. Jacobs made claims that such a practice made Sands act as a bank, the defense denied it saying no cash was transferred.
Banks in the United States operate under strict federal laws. The plaintiff argued the casino’s actions took place over a period of three years and constitute and ongoing behavior of such unethical practices on U.S. soil.
Sands terminated Jacobs as CEO of Sands China and claimed he had exceeded his authority and failed to keep the company’s board fully informed on business decisions.
The defense sough dismissal of the lawsuit, arguing Las Vegas was not the proper jurisdiction to resolve the dispute since Sanda China does not operate in Nevada. The defense claimed Jacobs made allegations about the company’s stock options which are subject to the rules of the Hong Long Stock Exchange. Judge Elizabeth Gonzalez refused to dismiss the lawsuit, noting she has jurisdiction based on the contacts between the parties in Nevada.