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MGM Resorts International said Tuesday it could donate $ 1 million by Oct. 1.–related charities if Mandalay Bay shooters' lawyers accept notices of lawsuits on behalf of nearly 2,000 clients.
This step is part of the next phase of its legal strategy to sue hundreds of victims on October 1 to avoid liability for the acts of Stephen Paddock, who opened fire on a crowded concert in his room hotel.
Lawyers and crisis managers described Tuesday's offer as unusual and said it was probably an attempt to avoid another public relations incident.
"We understand that being sued with a lawsuit can be difficult. We believe that donating to a charity on October 1 or another appropriate cause makes more sense than spending money to serve individual complainants, "said MGM Resorts in a statement.
MGM Resorts is proposing to donate $ 500 to a charity that supports victims or families on October 1 for each legal opinion accepted by lawyers. MGM said that it would serve people "with courtesy and respect" if their lawyers are unwilling to accept the documents.
Las Vegas attorney Aviva Gordon said the offer was "probably an attempt to control the damage to the rather unpleasant story that they have to pursue the victims."
Legal procedure
The MGM wishes that a federal judge states that the casino operator can not be held responsible for the shooting that occurred in Mandalay Bay under a law passed after the September 11 terrorist attacks.
MGM insisted that its lawsuits, which do not require money, are aimed at avoiding years of costly litigation.
The Judicial Panel on Multi-District Disputes will hear the case of MGM Resort on Sept. 27 in San Francisco.
The company's case relies on supportive antiterrorism by promoting effective technologies from the 2002, or safety, act. MGM says the law protects them from liability because they hired a security company certified by the Department of Homeland Security.
Experts said MGM's strategy made sense from a legal point of view.
However, the strategy required the company to take legal action by designating the victims as defendants. This triggered a negative reaction in social media, inspired the hashtag #BoycottMGM and forced CEO Jim Murren to apologize to his employees in an internal memo dated July 28th.
Eric Rose, a partner at Englander Knabe & Allen, a California-based crisis management company, said GMM's offer was too late.
"The timing of making a $ 1 million donation offer to all those they were pursuing was the announcement of the litigation," Rose said.
Contact Todd Prince at 702-383-0386 or [email protected]. To follow @toddprincetv on Twitter.
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