MGM Resorts Offers $75 Million to Settle

LAS VEGAS (CN) - MGM Resorts International will pay $75 million to settle a class action securities case if a federal judge approves it.

For settlement purposes only, U.S. District Judge Gloria Navarro on Friday preliminarily certified a class made of everyone who bought certain bonds and common shares of MGM Mirage, now known as MGM Resorts International, from Aug. 2, 2007 to March 5, 2009.

Navarro stayed proceedings pending a settlement hearing on Dec. 15. Lead plaintiff Robert Lowinger filed the original complaint in August 2009.

A stipulation and settlement filed on Aug. 28 would dismiss the case with prejudice, without MGM's admitting wrongdoing or liability and releasing it of all claims, in exchange for $75 million.

The Arkansas Teacher Retirement System, Philadelphia Board of Pensions and Retirement, Luzerne County Retirement System, and Stichting Pensioenfonds Metaal en Techniek are certified as class representatives.

They are represented by Robbins Geller Rudman & Dowd; Kessler Topaz Meltzer & Check; and Nix Patterson & Roach.

Lowinger sued MGM Mirage, former Chairman and CEO J. Terrence Lanni, Chairman and CEO James J. Murren, senior vice president Daniel J. D'Arrigo and Mirage Resorts president and CEO Robert H. Baldwin.

He claims they made misleading statements and misrepresentations about the company's financial state and business prospects to inflate its stock price 2007 to 2009.

MGM Resorts International owns several of the largest and most popular resorts on the Las Vegas Strip, including the MGM Grand, Mandalay Bay, Bellagio, New York, New York, Aria, Mirage, Monte Carlo, Luxor, Excalibur and Circus Circus resort casinos.

MGM officials were not available for comment Tuesday.

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