WYNN A BIG LOSER
Ex-casino boss antes up $20M for settlement
Disgraced casino mogul Steve Wynn (inset) will pay $20 million to Wynn Resorts, the gambling empire he created, as part of a deal to settle investor lawsuits over his alleged pattern of sexual misconduct.
The settlement reached this week totaled $41 million, including an additional payment from insurance carriers, over shareholder suits that accused company directors of turning a blind eye to 77-year-old Wynn’s years of alleged misconduct.
“Neither the company nor its current or former directors and officers were found to have committed any wrongdoing in connection with the settlement,” the casino company said in a statement.
Wynn shareholders filed the suits last year, arguing that public reports of multiple women accusing Wynn of forcing them to have sex devalued the company’s stock.
Wynn, who has denied all allegations of sexual misconduct, resigned from the company in February 2018 and sold his entire stake in the company, worth $2.1 billion at the time, a month later.
The Wednesday settlement, which is subject to the approval of a Las Vegas judge, also credits Wynn Resorts with $49 million for corporategovernance advances since the suits’ filing, bringing the total value of the truce to $90 million.
These include bylaw amendments that separate the role of the chairman and CEO and require a majority vote of the shareholders for the election or re-election of directors.
Wynn Resorts also committed to filling its nine-member board with at least 50 percent women and minorities. Four women currently sit on the board.
New York State Comptroller Thomas P. DiNapoli and the New York City Retirement Systems and Pension Funds served as co-lead plaintiffs on the derivative lawsuit — a legal action taken on behalf of a company when shareholders believe its officers haven’t met their fiduciary duties.
“We are gratified that the reforms in this agreement and those undertaken following the initiation of our lawsuit will protect Wynn Resorts’ employees and shareholders against future harm,” DiNapoli said in a statement.
Wynn Resorts properties include Wynn Las Vegas, Encore Boston Harbor in Massachusetts, and Wynn Palace in Macau.