Complaints Filed Against Steve Wynn and Wynn Resorts Board of Directors
The case against Steve Wynn and Wynn Resorts Board of Directors
Three shareholder derivative lawsuits have been filed in District Court, Clark County, Nevada against Steve Wynn and Wynn Resorts Board of Directors.
The first complaint was filed by Eglet Prince and Chimicles & Tikellis LLP. The Plaintiff, Norfolk County Retirement System, is a current stockholder of the Company. In the 42 page complaint, the shareholders seek redress from the injury and losses sustained by Wynn Resorts Limited as a result of egregious breaches of fiduciary duty, abuses of fiduciary power, sexual harassment and violations of law committed by the Company's founder, Chairman and Chief Executive Officer, Stephen A. Wynn. The complaint also alleges breaches of fiduciary duty by the Company's Board of Directors in turning a blind eye and disregarding a sustained pattern of sexual harassment and egregious misconduct by Mr. Wynn. The lawsuit also alleges that the compensation and benefits paid to Mr. Wynn and the directors during their fiduciary misconduct enriched them at the expense of the Company.
The second was filed by Eglet Prince and Grant & Eisenhofer of Wilmington, Delaware, derivatively on behalf of Wynn Resorts Limited. The Plaintiff, Operating Engineers Construction Industry and Miscellaneous Pension Fund is a long time institutional shareholder of the Company and was a stockholder during the misconduct alleged in the complaint. The shareholders allege in the complaint, that Mr. Wynn, for decades, preyed on female employees at his company, Wynn Resorts Ltd. ("Wynn Resorts"), seeking sexual gratifications from women who were dependent upon him for their livelihoods. His unwaveringly loyal Board of Directors ("Board") turned a blind eye to reports of sexual harassment and coercion. When he finally resigned after the Wall Street Journal recounted the repellent details of his reign, the Board only reluctantly accepted the resignation, choosing to praise their "friend" rather condemn his exploitations.
The third was filed by Eglet Prince, Bernstein Litowitz Berger & Grossman, LLP, Chimicles & Tikellis, LLP, and Saxena White, PA, derivatively on behalf of Wynn Resorts Limited. Plaintiffs, Boynton Beach Municipal Firefighters Pension Trust Fund and the Firemen's Retirement System of St. Louis are long time institutional shareholders of the Company and were stockholders during the misconduct alleged in the complaint. The 59 page complaint, alleges that for nearly a decade, the Board of Directors remained willfully blind to the sexual predation of Wynn Resort's former Chief Executive Officer, Steve Wynn, and after this damaging information came to the Board's attention, the directors decided to align themselves with Steve Wynn—not the Company, its shareholders, or its employees.