GGRAsia – Wynn Resorts settles class-action suit for US$70mln: reports

Wynn Resorts settles class-action suit for US$70mln: reports

Sep 20, 2024 Newsdesk Latest News, Top of the deck, World

Casino developer Wynn Resorts Ltd and certain of the group’s former executives have agreed to pay US$70 million to settle a class-action lawsuit that was filed in 2018 in the United States, according to media reports citing a court filing.

The suit accused the casino firm of “securities fraud” for not disclosing the sexual misconduct allegations against the group’s former chief executive, Steve Wynn. According to the claims, the lack of timely disclosure cost the company millions of U.S. dollars.

The reports said the defendants agreed to pay US$9.4 million of the settlement amount, with the remainder to be paid by insurers.

U.S.-based Wynn Resorts controls Macau casino licensee Wynn Macau Ltd.

Mr Wynn stepped down in February 2018 as Wynn Resorts chief executive amid allegations of sexual impropriety regarding company workers in the firm’s properties in Las Vegas, Nevada, in the U.S. Since then, the businessman has sold his entire stake in Wynn Resorts. He has consistently denied any wrongdoing.

The lawsuit now settled accused Wynn Resorts, as well as the group’s former CEO Matt Maddox, the ex-general counsel Kim Sinatra, and former chief financial officer Stephen Cootey, of concealing allegations against the company’s founder, which resulted in “material misrepresentations to shareholders during the period of March 28, 2016, to March 12, 2018”.

The settlement will be distributed to eligible shareholders who purchased Wynn Resorts’ shares during the specified period and suffered losses, said the reports.

In September last year Wynn Resorts settled a separate lawsuit filed in 2019 by nine female workers employed at Wynn and Encore Las Vegas. The suit included allegations of sexual harassment involving Mr Wynn.

In February 2019, the Nevada Gaming Commission imposed a US$20-million penalty on Wynn Resorts for 10 violations of the state’s Gaming Control Act and the commission’s rules, concerning failure to take appropriate action regarding allegations of sexual misconduct made against Mr Wynn and at least one other unnamed executive.

In July 2023 it was announced that Mr Wynn had agreed to pay US$10 million to end a legal battle with gambling regulators in Nevada, stemming from claims of his alleged sexual misconduct in the workplace.

In an unrelated matter, Wynn Resorts said in mid-September that the casino group agreed to forfeit US$130 million to resolve a 10-year-old investigation into transactions at Wynn Las Vegas that were related to foreign customers.