While it may make some sense to lawyers why MGM made this move, it’s not making a lot of sense to others, especially those affected by the deadly Las Vegas shooting.
MGM Resorts International (NYSE:MGM) is suing over 1,000 victims of Las Vegas shooting and is denying liability for the massacre.
The company has filed federal lawsuits in Nevada as well as California, against more than 1,000 victims and relatives of the October shooting rampage in Las Vegas last year. The hotel-casino company is trying to avoid liability claims with the move.
The lawsuit says that over 2,500 victims and related persons have filed or threatened to file complaints against the company and its affiliates. According to the suit, the claims against MGM and other parties in the suit must be dismissed based on a 20202 federal act.
The act allows liability protection to any company that uses anti-terrorism technology.
MGM (NYSE:MGM) defended itself and said that it used a security company for the festival, Contemporary Services, and that it was protected from liability as it was certified by the Department of Homeland Security.
According to the company, such protection extends to itself since it hired the security vendor. The named plaintiffs in MGM’s suits include MGM Resorts International, Mandalay Resort Group, Mandalay Bay, MGM Resorts Festival Grounds and MGM Resorts Venue Management.
Company spokeswoman Debra Deshong stated, “Years of drawn out litigation and hearings are not in the best interest of victims, the community, and those still healing.”
It was on October 1st that Stephen Paddock opened on a crowd of thousands of concertgoers at the Route 91 Harvest Festival from his hotel window. It became the largest mass shooting in modern U.S. history.
The gunman was responsible for the deaths of 58 people and wounded more than 500 others. He killed himself after.
Las Vegas attorney Robert Eglet called MGM’s (NYSE:MGM) decision to file the suit, “unethical.” Eglet remarked, “I’ve never seen a more outrageous thing, where they sue the victims in an effort to find a judge they like. It’s just really sad that they would stoop to this level.”
The FBI has not called the shooting an act of terrorism.
People quickly took to social media to condemn the company for the lawsuit with the hashtag #BoycottMGM.
One user on Twitter, ProfessingProf @Professing_Prof, tweeted, “Anyone with a conference or convention scheduled at MGM Resorts should cancel it and schedule it in a different venue. Cancel room reservations at MGM, Bellagio, CircusCircus, Luxor, Excaliber, Mandalay Bay, NewYork NewYork, the Mirage or other MGM property. #BoycottMGM”