Shares of Las Vegas Sands (NYSE:LVS) are down today on news they have been subpoenaed by the Securities and Exchange Commission in relationship to compliance to the Foreign Corrupt Practices Act.
The Sands also revealed they were being investigated by the Department of Justice.
TheStreet noted, "Las Vegas Sands said it is fully cooperating with the government and providing all documentation with respet to its Macau operations and dealings with the government going back several years.
"Analysts believe these allegations stem from claims made by former Sands China CEO, Steve Jacobs, regarding the bribing of officials. Las Vegas Sands has publicly denied these allegations.
"Jacobs has alleged that he was fired from the company without cause after refusing to carry out demands made by Las Vegas Sands CEO Sheldon Adelson.
"'While handicapping the end results of investigations of this sort are nearly impossible, we believe the headline risk will serve as an overhang on shares in the near term until more on the matter is known," Wells Fargo analyst, Carlo Santarelli, wrote in a note. "That said, we believe the Jacobs lawsuit has quietly been a drag on shares in recent months given the nature of the claims and the potential for something like this to occur.'"
Las Vegas Sands was trading at $43.89, down $2.75, or 5.90 percent, as of 11:47 AM EST.
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