Operator News
US – SLS Las Vegas facing lawsuit over broken investor promise
By Phil - 13 December 2017
Around 60 Chinese investors who were told they would receive US permanent resident cards for ploughing money into the SLS Las Vegas hotel and casino are now taking legal action against the casino’s owners.
They have filed a lawsuit in Los Angeles County Superior Court last month, arguing that each of the 60 investors invested $545,000 and have not had any return for their money or the promised green cards, which they were told they would receive after 30 months.
The lawsuit stated: “Once the SLS Hotel opened, it has allegedly not turned a profit from day one and is currently on the verge of bankruptcy. SLS Hotel revenue was less than 50 per cent of what was projected so the project had not created sufficient jobs to allow all investors, including some of the plaintiffs to get green cards.”
The casino’s main owners, Stockbridge Capital is currently trying to offload the hotel to Meruelo Group.
As well as naming Stockbridge Capital Group, the suit names other project managers such as SBE Entertainment and Henry Global Consulting.
Stockbridge Capital said it “is aware of recent litigation by certain alleged minority investors in the company’s second lien lenders and it believes such litigation is without merit. The company does not expect the litigation will deter the sale.”
