Wynn shaken by sexual misconduct allegations against founder

NEW YORK » Wynn Resorts is denying multiple allegations of sexual harassment and assault by founder Steve Wynn detailed in a Wall Street Journal report that sent shares of the casino company tumbling more than 10 percent Friday.

The paper reported that a number women say they were harassed or assaulted by the casino mogul and finance chair of the Republican National Committee.

One case led to a $7.5 million settlement with a manicurist, the paper reported. The detailed report relies on interviews with dozens of people who corroborate a decades-long pattern of sexual misconduct with female employees.

The company says it is committed to operating with the “highest ethical standards and maintaining a safe and respectful culture.” In a statement sent to The Associated Press, it called the allegations part of a smear campaign related to divorce proceedings from Wynn’s exwife.

Wynn also denied the allegations personally.

Wynn, who is chairman and CEO of the company he founded, is a titan in Las Vegas and played a major role in the revitalization of the Las Vegas Strip in the 1990s. It was Wynn’s company that built the Golden Nugget, The Bellagio and Mirage Resorts in the heart of the town.

A wave of sexual misconduct claims against prominent figures in entertainment, media and politics gained momentum last fall in the aftermath of articles detailing movie producer’s Harvey Weinstein’s decades of alleged rape and harassment. But Wynn is the first CEO and founder of a major publicly held company to come under scrutiny since the Weinstein allegations surfaced.

There appeared to be immediate business implications for the casino magnate. The Massachusetts Gaming Commission said Friday it is launching a review following the allegations published by the Journal. Spokeswoman Elaine Driscoll said the commission’s investigations and enforcement bureau will conduct a regulatory review to determine the appropriate next steps, adding “the suitability and integrity of our gaming licensees is of the utmost importance.”

Wynn is building a roughly $2.5 billion resort in the Boston suburb of Everett.

In a lengthy statement, Wynn and his company both attributed the allegations to a campaign led by Wynn’s ex-wife, Elaine Wynn.

“The conduct of Elaine during the course of the pending lawsuits has been shocking and deeply disturbing to me personally and as the CEO of Wynn Resorts,” Wynn said.