Genting Malaysia Berhad (GENM) is embroiled in a high-stakes legal battle as it defends against a RM2.6 billion (€557 million) lawsuit filed by its joint venture partner, RAV Bahamas Ltd. The dispute involves Resorts World Bimini (RWB) in the Bahamas, operated by BB Entertainment Ltd., a company in which GENM holds a 78 percent stake.
RAV Bahamas accuses Genting’s US subsidiary, Genting Americas Inc. (GAI), of using its majority control to shift liabilities from other Genting properties onto RWB, allegedly turning the venture into a “financial wasteland.” Claims include denial of access to financial records and blocking an independent audit. RAV describes the actions as a “massive and coordinated fraud” that left its contributions to the venture “essentially worthless.”
Genting’s motion to dismiss
On 22 November, GAI filed a motion to dismiss the lawsuit in the US District Court for the Southern District of Florida. It argues that the case is a shareholder dispute and should be addressed under the Shareholders’ Agreement governing BB Entertainment Ltd. in a forum outside the US court system.
GAI further contends the claims are “time-barred” and that the complaint fails to establish sufficient facts to meet the required legal standards. GENM has consistently denied the allegations, labelling them “malicious and baseless” and accusing RAV of seeking an “exorbitant payment” to tarnish its reputation.
GENM reiterated in its Bursa Malaysia filing that the company firmly believes that the Complaint is baseless and without merit and will continue to defend against these claims.
The conflict dates back to 2012 when BB Entertainment Ltd. was formed as a 50/50 joint venture to develop RAV’s Bimini Bay property. RAV contributed 20 acres of land on which RWB now stands. In 2015, Genting increased its stake to 78 percent, assuming majority control of the integrated resort, which features a casino, hotel rooms, restaurants, and a jetty for cruise ships.
RAV claims the resort has suffered massive financial losses under Genting’s leadership due to mismanagement and deliberate denial of transparency, preventing the joint venture from achieving profitability.
Legal outlook and implications
The motion to dismiss could lead to the dispute being resolved outside the US judicial system if the court accepts GAI’s arguments. Should the motion fail, the lawsuit will advance, intensifying scrutiny of Genting’s practices at RWB. GENM remains resolute in contesting the allegations, asserting its belief in the lack of merit in the claims.
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