US court dismisses initial suit by Genting Malaysia's business partner, allows amended complaint

• The court agreed with Genting Malaysia’s position that the complaint in its initial form was “merely a shareholders’ dispute” in a decision on July 1, and that RAV Bahamas' current allegations are “baseless and without merit”, according to Genting Malaysia in an exchange filing on Monday.

KUALA LUMPUR (July 7): A lawsuit filed in the US against Genting Malaysia Bhd (KL:GENM) by its business partner RAV Bahamas Ltd has been dismissed, though the court opened the door for an amended complaint.

The court agreed with Genting Malaysia’s position that the complaint in its initial form was “merely a shareholders’ dispute” in a decision on July 1, and that RAV Bahamas' current allegations are “baseless and without merit”, according to Genting Malaysia in an exchange filing on Monday.

However, the US District Court, Southern District of Florida gave RAV Bahamas one last opportunity to revise its complaint before making its final ruling to toss out the lawsuit, Genting Malaysia said.

In October 2024, Genting Malaysia’s indirect unit Genting Americas Inc, which operates Resorts World Bimini in the Bahamas, was named in a complaint by RAV Bahamas in the court.

RAV Bahamas alleged that Genting Americas has turned RW Bimini into a “financial wasteland” by dumping almost US$1 billion of debt into it, Bahamas’ news portal The Tribune reported.

RAV Bahamas is seeking damages of more than US$600 million (RM2.57 billion) from Genting Americas.

Resorts World Bimini is owned and operated by BB Entertainment Ltd, in which Genting Malaysia indirectly holds a 78% stake, while RAV Bahamas holds the remaining 22% stake. Genting Americas, which is incorporated in Delaware in the US, is an affiliate company of BB Entertainment.

Shares of Genting Malaysia were traded down one sen or 0.5% to RM2 at 2.43pm on Monday, valuing the group at RM11.88 billion.

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