KUALA LUMPUR (Oct 17): Genting Malaysia Bhd (KL:GENM) said the lawsuit filed by RAV Bahamas Ltd, seeking over US$600 million (RM2.57 billion) in damages related to Resorts World Bimini's operations, will not materially impact the group's financial results or operations.

“There are no expected losses, other than the cost of defence, on the basis that GAI [Genting Americas Inc] firmly believes that the complaint is entirely baseless and without merit,” GenM said on Thursday in a reply to queries by Bursa Malaysia regarding the circumstances behind the lawsuit.

The complaint, lodged on Oct 7 in the US District Court for the Southern District of Florida, was served on GAI, Genting’s indirect subsidiary, on Oct 11.

The casino operator said the group is currently preparing a comprehensive legal response, which will be filed with the court in the coming weeks.

The lawsuit revolves around a shareholder dispute, with RAV Bahamas, a long-time partner in the Bimini resort project through joint venture BB Entertainment Ltd, alleging breaches of shareholder agreements.

GenM described the claims as "malicious and baseless", and contended that RAV Bahamas and its principals are attempting to extract an unjustified payment and inflict reputational harm.

“The suit is nothing more than a shareholder dispute in which RAV seeks unsubstantiated damages in excess of US$600 million, and also requests pre- and post-judgment interest at unspecified rates,” GenM said.

GenM also responded to Bursa’s queries on the issue by saying that GAI, which is incorporated in Delaware, is not classified as a major subsidiary under the Bursa Malaysia Main Market listing requirements.

GenM said the total cost of investment in GAI is consolidated within the group financial statements, and is “not publicly available on a standalone basis”, being merged under one account with its operations in the US and the Bahamas.

The combined operations in the US and the Bahamas contributed RM1.88 million to the group's total revenue in the financial year ended Dec 31, 2023.

Shares of Genting Malaysia dropped five sen or 2.15% to close at RM2.28 on Thursday, valuing the company at RM13.54 billion. Year-to-date, the stock has fallen by 14.93%.