Sands China Sanctioned for Court Order Violation

News

Yesterday, Nevada-based Judge Elizabeth Gonzalez stated that she has decided to impose several sanctions on Sands China Ltd., a subsidiary to gambling operator Las Vegas Sands Corp., due to the company’s failure to present key documents related to a lawsuit over the termination of its former president Steven Jacobs.

Judge Gonzalez filed a 40-page ruling on Friday, in which she ordered that Sands China needs to make sure the documents in question will be delivered. It will also have to pay the amount of $250,000 to several charities, concerned with legal matters, and to cover the costs for a total of nine hearings on Mr. Jacobs’ claims that his termination was not rightful. His lawyers requested from the court to impose “substantial evidentiary and monetary sanctions” on the gambling operator.

Judge Gonzalez had previously stated that Sands China violated its former president’s rights by failing to present the necessary documents.

She also ruled in yesterday’s filing that the Macau-based gambling operator will not be allowed to call witnesses during the hearing on whether Judge Gonzalez has any jurisdiction over the case. The hearing in question is set to take place in April.

Ron Reese, a spokesperson for Las Vegas Sands, shared with media that the company is disappointed with the ruling, as it was not supported by adequate evidence. He also pointed out that a higher court decision will be sought.

Back in 2010, Mr. Jacobs took to court Sands China and its parent company Las Vegas Sands for his termination. The defendants were asked to present a total of 100,000 emails as well as other documents. Mr. Jacobs wanted to use the papers, in order to prove his claims that certain decisions concerning Sands China’s operations in Macau were actually made in Las Vegas.

Back in 2012, Judge Gonzalez ordered that Sands China could not use the Macau Personal Data Protection Act as a reason why it would not disclose the necessary documents. She issued her ruling after it became clear that some of the documents connected to Mr. Jacobs’ case were transported to the US and were reviewed and redacted by Las Vegas Sands’ employees.

The gambling operator failed to inform the court about the existence of the data before June 2012.

In March 2013, Judge Gonzalez stated that Sands China had breached her previous order by editing the documents. She then ruled that a hearing would be held so as to be able to determine whether the operator had willfully violated her orders and whether Mr. Jacobs’ case was in any way prejudiced by these violations.

Judge Gonzalez added in her ruling that she strongly disapproved of Sands China’s lack of transparency.

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