NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Red Rock Resorts, Inc. (NasdaqGS: RRR).
On May 1, 2017, Red Rock Resorts disclosed that “[o]n April 27, 2017, the Company purchased entities that own the land subject to the Boulder land lease and the Texas land lease from the Related Lessor for aggregate consideration of $120 million.” The two ground leases are reported to cover 27 acres of land under Boulder Station and 47 acres of land under Texas Station with a total annual lease payment of approximately $7.1 million, meaning the company paid about 17 times annual rent to terminate the two leases and purchase the 74 acres of land. At present, it is unclear how the purchase was financed, whether an independent appraisal was performed to determine a fair market price or whether the transaction was approved by the Audit Committee of the Company’s Board of Directors.
KSF’s investigation is focusing on whether Red Rock Resorts’ officers and/or directors breached their fiduciary duties to the Company’s shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-time holder of Red Rock Resorts shares, and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (lewis.kahn@ksfcounsel.com).
About Kahn Swick & Foti, LLC
KSF, whose partners include the Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities, antitrust and consumer class actions, along with merger & acquisition and breach of fiduciary litigation against publicly traded companies on behalf of shareholders. The firm has offices in New York, California and Louisiana.
To learn more about KSF, you may visit www.ksfcounsel.com.
