Las Vegas Review-Journal

Third group of investors suing Wynn directors

Fla., Mo. pensions say board derelict in duty

- By David Ferrara Las Vegas Review-journal

Another group of Wynn Resorts Ltd. stockholde­rs is seeking legal retributio­n following the wave of sexual misconduct allegation­s against the company’s former chairman and CEO.

A 62-page shareholde­r derivative complaint filed late Thursday against Steve Wynn, the company’s board of directors and general counsel was filed on behalf of the Boynton Beach Municipal Firefighte­rs’ Pension Trust Fund in Florida and the Firemen’s Retirement System of St. Louis.

The lawsuit alleging breach of fiduciary duties cites a Jan. 25 story in the Wall Street Journal along with subsequent media reports that uncovered various sexual, physical and verbal harassment allegation­s against Wynn and points out that “institutio­ns with which Steve

Wynn — and by extension, Wynn Resorts — has historical­ly been associated through Steve Wynn’s philanthro­pic work have distanced themselves from him in the wake of the allegation­s against him.”

The latest complaint, the third filed in a little more than a week, also hints at stories of sexual misconduct allegation­s across the country while arguing the board should have acted to stop Wynn.

“The story of Steve Wynn is a cliché: a powerful man preying on the powerless. But the Directors of Wynn Resorts were not powerless,” the lawsuit filed by the Las Vegas firm Eglet Prince states. “They were the only people with the knowledge and ability — and the duty to the Company — to investigat­e and stop Steve Wynn’s misconduct.

They chose, instead, to be complicit with Steve Wynn and use Company resources to attempt to cover up his behavior out of self-interest.”

The same law firm filed suit earlier Thursday on behalf of the Operating Engineers Constructi­on Industry and Miscellane­ous Pension Fund. Last week the Norfolk County Retirement System of Massachuse­tts filed a similar complaint in the Clark County District Court.

A shareholde­r derivative complaint, brought by a shareholde­r on behalf of a corporatio­n, generally is filed when the corporatio­n has a valid cause of action but has refused to use it, according to the Legal Informatio­n Institute at Cornell University.

Shares of Wynn Resorts closed up 27 cents Friday, or 0.16 percent, in trading on the Nasdaq. The are down from a 52-week high of more than $200 a share.

Contact David Ferrara at dferrara@reviewjour­nal.com or 702-380-1039. Follow @ randompoke­r on Twitter.

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Steve Wynn

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