Wynn Resorts has agreed to pay $70 million to settle a lawsuit filed by investors who accused the company of failing to disclose sexual misconduct allegations against its former CEO, Steve Wynn.
The settlement comes after the company’s stock value dropped significantly when the allegations were made public in 2018. Investors argued that Wynn Resorts misled them about the CEO’s conduct, which ultimately harmed shareholder value.
Of the $70 million settlement, Wynn Resorts will contribute $9.4 million, with the remainder covered by the company’s insurers. The legal claims stem from statements made between March 28, 2016, and February 12, 2018, during which time the company failed to disclose the full extent of Wynn’s misconduct.
Steve Wynn, who resigned in 2018 following a Wall Street Journal investigation into a pattern of sexual misconduct, had faced numerous allegations over the years. These included accusations of harassment and inappropriate behavior toward employees, which he denied.
Regulatory bodies, including the Nevada Gaming Control Board and the Massachusetts Gaming Commission, launched investigations into Wynn Resorts, leading to fines of $20 million in Nevada and $35 million in Massachusetts. Additionally, the company settled a separate class-action lawsuit in the previous year involving nine women who had accused Wynn of harassment during their time at the company.
The settlement reflects a broader effort by Wynn Resorts to rebuild its reputation. Since Wynn’s departure, the company’s new leadership has taken steps to distance itself from its founder and implement stronger corporate governance policies. These measures are aimed at ensuring better compliance with industry standards and restoring shareholder confidence.
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