Former casino mogul to fork out a significant sum
Former casino mogul Steve Wynn is set to pay $20 million to Wynn Resorts as part of a lawsuit settlement. This relates to allegations of his sexual misconduct over his years at Wynn Resorts.
Wynn Resorts is set to get a total of $41 million to pay out the suits
The deal stems from a number of shareholder lawsuits against Wynn Resorts claiming the company’s board was complicit in Steve Wynn’s misconduct over the course of many years.
Wynn Resorts is set to get a total of $41 million to pay out the suits. The balance of $21 million will be paid by the company’s insurance carriers on behalf of former and current employees.?
The company will also introduce updates to its corporate governance as part of the settlement. These will include having a separate role for the CEO and chairman positions, plus further worker protections put into place.?
The agreed lawsuit settlement is pending the approval of a Las Vegas judge.
Lawsuits against the company
One of the lawsuits was originally filed by New York State Comptroller Thomas DiNapoli. It argued that the Wynn Resorts board did nothing to put a stop to the alleged misconduct of its founder. The derivate lawsuit was filed on behalf of shareholders.
the Wynn Resorts board did nothing to put a stop to the alleged misconduct of its founder
A number of pension funds had similar complaints, which saw the lawsuits being combined with the New York ones.?
As per the settlement, Wynn Resorts itself, as well as the former and current directors and officers, were not found guilty of committing any form of wrongdoing.?
Nevada Gaming Control Board still pursuing Steve Wynn
The Nevada Gaming Control Board has been coming after Wynn. The former casino mogul believes the group has no jurisdiction over him as he no longer has a role with any gaming licensee in Nevada. Wynn is seeking a motion to dismiss a complaint the board filed against him.?
However, the gaming board has now declared the motion to dismiss legally flawed. Wynn has until December 9 to reply to the board, which could lead to a hearing in front of the Nevada Gaming Commission on December 19.
The gaming board requested that the Nevada Gaming Commission fine Wynn.
Details of the latest court filing
In its 13-page filing on Wednesday, the Nevada Gaming Control Board said: “There is no language in the Gaming Control Act that even hints that the board’s investigatory and disciplinary powers are dependent on a person’s current nexus with a gaming licensee.”
It noted that, while a license can be surrendered, the commission needs to accept the surrender first. Even following a surrender, the former license holder is still liable for fines, taxes, interest, or penalties due.?
The filing went on to say that Wynn used the likes of NDAs and payments in an attempt to hide his behavior from both the gaming board and his own company. He also refused to appear before the board to provide testimony, impeding the gaming board’s investigation as a result.
Overview of the allegations against Wynn
Following the release of a Wall Street Journal article outlining sexual misconduct allegations against Wynn, in February 2018 the Wynn Resorts founder stepped down from his CEO and chairman roles. He proceeded to sell all of his shares in the company.
He has been sued by numerous parties since the allegations came to light. However, he has yet to receive a fine from any gaming regulator.?
Wynn Resorts company hit hard
Wynn Resorts was hit hard by the allegations against Steve Wynn, receiving the largest fine in Nevada history of $20 million.
It was also threatened with being stripped of a casino license for its nearly finished $2.6 billion casino in Massachusetts. In the end, the casino went ahead, leading the Massachusetts Gaming Commission to levy a fine of $35 million against the company.?Wynn Resorts is also facing numerous lawsuits.