Casino operator Wynn Resorts will receive $41 million from ex-boss Steve Wynn and insurance carriers as part of a settlement in shareholder lawsuits that accused company directors of failing to address allegations of a decades-long sexual misconduct pattern leveled against Mr. Wynn.
In a statement issued Wednesday, Wynn Resorts said that neither the company itself nor former or current directors and higher standing officials were found to have committed any wrongdoing relating to the pending settlement.
The proposed deal is subject to approval of a Las Vegas judge. Under its terms, Mr. Wynn will have to pay $20 million in damages, while the remaining $21 million will be paid by insurance carriers on behalf of current and former Wynn Resorts staff.
Mr. Wynn quit Wynn Resorts in February 2018. His departure occurred about a month after the publication of a bombshell report by the Wall Street Journal in which former and current employees at Wynn Resorts’ two casinos in Las Vegas accused the embattled businessman of subjecting them to unwanted sexual advances and abusing his authority to force them into performing sex acts on him. The disgraced businessman has denied all allegations.
The Settlement
The settlement stems from multiple shareholder lawsuits, all filed in 2018 and later on consolidated into a single one in Clark County District Court in Las Vegas. Plaintiffs include the New York State Retirement Fund, Pennsylvania’s Operating Engineers Construction Industry and Miscellaneous Pension Fund, and municipal firefighters in California.
Lawsuits alleged that Wynn Resorts officers and directors knew about the incidents of sexual misconduct involving the company’s founder and former CEO and Chairman, but did not disclose or address those properly.
Wynn Resorts said Wednesday that the settlement reached credits it with $49 million for changes it has made since the publication of the WSJ report. Measures implemented include new policies for workers’ protection and the addition of eight new independent board members, including four female directors.
Commenting on their lawsuit and the recently reached settlement, New York Comptroller Thomas DiNapoli said Wednesday that they have filed their lawsuit “in response to serious and repeated allegations of sexual misconduct by Steve Wynn and the prior board’s alleged failure to stop it.” Mr. DiNapoli is in charge of New York’s $209 billion retirement fund. The fund is estimated to hold $23 million worth of Wynn Resorts shares.
The state Comptroller added that they are “gratified that the reforms in this agreement and those undertaken following the initiation of our lawsuit will protect Wynn Resorts employees and shareholders against future harm.”
The sexual misconduct allegations against Mr. Wynn prompted regulatory investigations in Nevada and Massachusetts, the two states where Wynn Resorts is licensed to operate casino resorts. In Nevada, the company had to pay a $20 million fine for failing to address the allegations against its former boss, while Massachusetts regulators hit it with a $35 million penalty. Mr. Wynn has not been ordered to pay anything so far by regulators.
Source: Steve Wynn to pay half of $41 million settlement with pension fund after sex allegations, MarketWatch
Follow us on Facebook and Twitter to stay up to date on the day’s top casino news stories
