Sun asks for dismissal of Sands’ lawsuit

Friday, Aug. 18, 2006 | 9 a.m.

The Las Vegas Sun filed a motion Thursday to dismiss a defamation lawsuit filed against it by Las Vegas Sands Corp., arguing that the owner of the Venetian was attempting to chill speech protected by the First Amendment.

The newspaper stated that the story cited in the Sands lawsuit is both factually correct and fair comment under the First Amendment.

Last month, the gaming company sued the newspaper in Clark County District Court over an April 2 Sun column by Jeff Simpson that analyzed the chances of companies seeking a casino license in Singapore, a competition Las Vegas Sands won.

The Sands argued that Simpson and the newspaper acted with malice by writing that the gaming company had a "sorry Nevada regulatory record."

"Sands comes to this court alleging a single count of defamation due to Mr. Simpson's fair and perfectly accurate report of Sands' sordid regulatory history," the Sun said in its motion.

The motion also stated that the Sands suit "is not based upon a legitimate concern over the protection of goodwill or pristine business reputations, as Sands suggests. Rather, this action is nothing more than a heavy-handed maneuver designed to intimidate defendants and other members of the press from reporting about Sands' expansive wardrobe of dirty laundry."

The newspaper's response to the lawsuit makes reference to a Feb. 25, 2004, action in which the state Gaming Control Board prosecuted a complaint before the Nevada Gaming Commission against Sands alleging 12 counts of violating gaming regulations. The allegations included "claims for 'rigging' drawings, record-keeping transgressions, and purchasing and reselling counterfeit goods to customers," according to the Sun response.

Sands admitted to nine of the counts, pleaded the equivalent of "no contest" to the other three counts and paid a $1 million fine, the newspaper said.

"It is clear that Sands' complaint is right about one thing, though," the Sun stated in Thursday's motion.

"It says that this case is about a 'despicable lie.' It is. But the despicable lie here is Sands' very own, not an article written by Mr. Simpson or anyone affiliated with the Las Vegas Sun. That Sands must resort to making knowingly false allegations - allegations belied by Sands' express admissions to gaming regulators in public records - tells this court all it needs to know.

"Sands' complaint is a groundless and transparent attempt to bully anyone who dares to say anything negative about it, even though it is true. The complaint should be dismissed."