Oregon files derivative lawsuit against Wynn, directors
SALEM, Ore. — The state of Oregon has sued casino developer Steve Wynn and the board of directors of Wynn Resorts Ltd. for allegedly failing to act in the best interests of shareholders and stop sexual misconduct at the company, state officials said Wednesday.
The civil case, alleging massive breaches of fiduciary duty that caused damage to the company and impaired long-term shareholder value, was filed Tuesday in Clark County District Court. Last month New York’s public pension fund, the nation’s third largest, filed a similar lawsuit.
The offices of Oregon Attorney General Ellen Rosenblum and Oregon Treasurer Tobias Read announced the lawsuit, saying Oregon’s pension system held 8,506 shares of Wynn Resorts worth $1.3 million and that the investment is suffering a loss because of misconduct and inaction.
Wynn Resorts spokesman Michael Weaver said he had no comment on the lawsuit. Wynn has denied he harassed and assaulted women. He resigned as chairman and CEO of the company bearing his name Feb. 6.
“The story of Steve Wynn is a cliche: a powerful man preying on the powerless,” the lawsuit said.
“But the Directors of Wynn Resorts were not powerless. They were the only people with the knowledge and ability — and duty to the company — to investigate and stop Steve Wynn’s conduct.”
Oregon’s action is the latest known derivative lawsuit filed in state court in Las Vegas against the board and the billionaire.
Besides New York and Oregon, at least four other shareholder groups have filed lawsuits. Derivative lawsuits allow shareholders to take legal action on behalf of a company when they believe its officers or directors are not meeting their fiduciary duties. If the complaints are successful, Wynn and the company’s board members could be ordered to pay monetary damages to Wynn Resorts, not the shareholders who filed the lawsuits.