A long-time coming
A number of Wynn Resorts investors will get to share a $70m settlement paid out by the casino operator and former executives. It comes after a six-year legal battle centered around sexual harassment claims against former company Chairman and CEO Steve Wynn.
material misrepresentations to shareholders”
The lawsuit accused the operator and some former execs, including ex-CEO Matt Maddox, of failing to report allegations against Steve Wynn. This supposedly resulted in “material misrepresentations to shareholders” during a period between March 2016 and March 2018.
The select number of shareholders who purchased their shares during this period and suffered losses will get to split the settlement.
Background of the case
The Wall Street Journal first broke revelations regarding sexual harassment by Steve Wynn in January 2018. Wynn later resigned as CEO and Chairman the following month, also selling his shares in the company.
An undisclosed settlement was reached between Wynn Resorts and the accusers of Steve Wynn last year. The nine women, who worked as manicurists or makeup artists at the Wynn Salon or Encore Salon, shared the settlement.
Steve Wynn agreed to pay $10m to the Nevada Gaming Control Board in 2023 after the regulator filed a five-count complaint against him, questioning his right to hold a gaming license. He also forfeited his license in the state, agreeing to leave the Nevada gaming industry.
Costly times for Wynn
Earlier this year, Wynn had to pay out in another situation. The casino operator forfeited $130m as part of a non-prosecution agreement regarding a decade-long case over unlicensed global money transmitting.
It represents a record as the largest payment a casino company in Nevada has made to the Department of Justice, surpassing the $47.4m settlement from Las Vegas Sands made in 2013.
According to the Securities and Exchange Commission, Wynn’s transgressions “date back many years and violated Wynn’s compliance policies and procedures.” Investigators discovered disguised transactions at the property involving former agents, employees, and some patrons.