Company has deal to resolve shareholder suits

Wynn Resorts Ltd. has $41 million coming its way from a lawsuit settlement related to allegations against former chairman and CEO Steve Wynn.

Shareholders began filing lawsuits against the company and its board of directors after the allegations of sexual misconduct by Steve Wynn emerged in early 2018. The suits claimed the allegations devalued the company’s stock.

The lawsuits, filed in

February and November 2018, accused the board of disregarding Steve Wynn’s alleged pattern of sexual harass

ment and misconduct. Steve Wynn has denied any wrongdoing.

In a statement Wednesday, Wynn Resorts said, “Neither the company nor its current or former directors and officers were found to have committed any wrongdoing in connection with the settlement,” which is subject to court approval.

Steve Wynn would pay $20 million of the settlement, with the other $21 million coming from insurance carriers. The settlement also would credit Wynn Resorts with $49 million from corporate governance enhancements.

Derivative lawsuits such as these are brought on by a shareholder on behalf of the corporation. If successful, the lawsuit’s proceeds go to the corporation, not the shareholder who brought the suit.

As part of the settlement, Wynn Resorts agreed to make a series of changes, including amending its bylaws to separate the roles of chairman and CEO, as well as requiring a majority shareholder vote for the election or re-election of directors.

Additionally, Wynn Resorts agreed to strengthen its board diversity and follow enhanced succession planning when finding replacements for its board and executive roles.

The company is also set to adopt 10(b)5-1 trading plans for its directors and executives holding $15 million in stock. This would allow major holders to sell shares at a predetermined time to avoid accusations of insider trading.

Wynn shares climbed 42 cents, or 0.35 percent, to close at $121.97 Wednesday.

Contact Bailey Schulz at bschulz@ reviewjournal.com or 702-383-0233. Follow @bailey_schulz on Twitter.