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Las Vegas Sands Corp. is under investigation by the Department of Justice over allegations made by a former executive.
Las Vegas Sands has received a subpoena from the Securities and Exchange Commission (SEC) relating to Las Vegas Sands' compliance with the Foreign Corrupt Practices Act. The casino operator said that they believe the subpoena was prompted by allegation in a lawsuit made by former Sands China CEO Steve Jacobs. In the lawsuit, Jacobs claims that Las Vegas Sands made improper payments to some officials essentially bribing them into making decisions in favor of the casino.
So far, Las Vegas Sands has cooperated with the investigation and they maintain their innocence. Asked what their game plan is, the company says that it intends to continue to vigorously defend itself against Jacobs' lawsuit.
After news of the investigation broke, shares of Las Vegas Sands fell $1.22, or 2.6 percent, to $45.42 in morning trading.
Analyst Carlo Santarelli of Wells Fargo commented on the matter saying, "While handicapping the end results of investigations of this sort are nearly impossible, we believe the headline risk will serve as an overhang on the shares in the near term until more on the matter is known."
As always, stay tuned to Casinofan for more news and updates.
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