Steve Wynn Agrees to $20m Payment to Wynn Resorts for Settlement
Wynn Resorts has had a rough go over the past few months as the company’s former CEO Steve Wynn has faced sexual harassment allegations. The company’s licensing has been reviewed in Massachusetts as well as Nevada, with executives put through the ringer based on how they acted based on the allegations by employees against Wynn. Now, the company is set to receive over $40 million from Steve Wynn and insurance carriers based on a settlement reached regarding shareholder lawsuits.
The shareholder lawsuits accused the directors of Wynn Resorts of failing to address sexual harassment allegations that took place over decades involving Steve Wynn. According to Wynn Resorts, the company nor any former or current directors were found to have been in the wrong related to the settlement.
Now a deal has come to light regarding the settlement that just has to be approved by the judge to see the company earn millions. The terms of the deal state that Steve Wynn will have to pay $20 million to the company in damages. An additional $21 million will be paid by insurance carriers and go towards the current staff of the company as well as former employees.
Steve Wynn removed himself from Wynn Resorts in February of last year. He left the company just one month after a report was published by the Wall Street Journal that revealed current and former employees from two casinos in Las Vegas has accused the mogul of sexual harassment. Some employees accused Wynn of using his position in the company to force them to perform sexual acts with him.
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Wynn continues to deny these allegations.
Several shareholder lawsuits were filed last year and were later on consolidated into one filing within the Clark County District Court, located in Las Vegas, Nevada. There are several plaintiffs named in the case including the Pennsylvania Operating Engineers Construction Industry and Miscellaneous Pension Fund and the New York State Retirement Fund. Also in the mix is the California municipal firefighters.
The lawsuits claim that Wynn Resorts top officials knew about the incidents involving sexual misconduct and Steve Wynn but they did not handle the situations in the right manner. The company reportedly immediately took action after the report by the Wall Street Journal was released, providing new policies for employee protections as well as adding new independent board members, with four females added to the mix.
Those involved in the lawsuits feel the settlement agreement will protect the employees of Wynn Resorts and shareholders against harm in the future.
As mentioned, Wynn Resorts faced scrutiny from gaming regulators in Massachusetts as well as Nevada. In Massachusetts, the Encore Boston Harbor had yet to open and the company was at risk of losing their gaming license. In the end, they were allowed to remain in operation but had to pay $35 million for failing to address the allegations against Steve Wynn.
In Nevada, the company had to pay a $20 million fine for their actions. Reportedly, while Wynn Resorts has paid out a ton of cash, Steve Wynn has not been ordered to pay anything thus far by regulators. We shall see in time if they decide to make Wynn pay up. With this settlement, at least he will have to forfeit a big chunk of cash for the trouble caused to the company based on the allegations.