Wynn Resorts, Steve Wynn face new lawsuit
Just when things were starting to calm down somewhat for the casino operator, Wynn Resorts is now facing a new lawsuit. A former shareholder is suing current and former executives with the company, as well as its founder and former CEO, Steve Wynn, over allegations that the Wynn Resorts knowingly concealed information related to Steve Wynn's sexual harassment accusations.
The lawsuit was filed in a Nevada court on November 27 by Robert Bruce Bannister. He asserts that the sexual misconduct debacle singularly caused the company's stock prices to fall because the company didn't do enough to protect its interests - specifically, not preventing or responding to previous sexual misconduct allegations launched against Steve Wynn.
The suit reads, in part, “Steve Wynn engaged in misconduct … and knowingly and intentionally breached his fiduciary duties by engaging in a pattern of sexual harassment and abuse and actively concealing such misconduct in violation of the company’s policies and codes as well as various laws and regulations."
Named in the suit are company co-founder and CEO Matt Maddox, former executive Kim Sinatra and an additional five former and four current board members. These include Jay Johnson, Clark Randt, Alvin Shoemaker and Pat Mulroy, who are still on the board, and former Nevada governor Bob Miller, Ray Irani, John Hagenbuch, D. Boone Wayson and Edward Virtue, who have been removed from the company.
The suit is requesting punitive damages against Steve Wynn of more than $15,000, compensation for damages incurred due to the stock devaluation and compensation for all expenses related to the case.