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Wynn Resorts, former CEO face new lawsuit from shareholder

TAGs: Steve Wynn, Wynn Resorts

It has been ten months after Steve Wynn “voluntarily” resigned from his position as chairman and CEO of Wynn Resorts following the revelation of allegations of major sexual deviance on his part. Just as things were beginning to calm down for the company and allowing it to move on to more important issues, it is now facing a fresh lawsuit brought forward by a former shareholder. The lawsuit involves Steve Wynn, as well as current and former board members at the company.

Wynn Resorts, former CEO face new lawsuit from shareholderAccording to the Las Vegas Review-Journal, the lawsuit was filed at the end of November by Robert Bruce Bannister. The Nevada resident and former Wynn Resorts shareholder filed his suit in Clark County (Nevada) District Court, alleging that the company was aware of Steve Wynn’s activities, but didn’t react in order to prevent them and protect the company.

The lawsuit reads, “Steve Wynn engaged in misconduct … and knowingly and intentionally breached his fiduciary duties by engaging in a pattern of sexual harassment and abuse and actively concealing such misconduct in violation of the company’s policies and codes as well as various laws and regulations.”

It further states that the company’s former and current directors “knowingly, intentionally and fraudulently violated and breached their fiduciary duties of good faith, fair dealing, loyalty, due care, candor and oversight as a result of the misconduct …”

In addition to naming the ousted executive, current board members Alvin Shoemaker, Clark Randt, Jay Johnson and Pat Mulroy are named. The former board members called out include Nevada’s former governor, Bob Miller, as well as, D. Boone Wayson, Edward Virtue, John Hagenbuch and Ray Irani. Until last November, Wayson was still serving as the company’s chairman of the board.

In his lawsuit, Bannister is seeking compensation for damages incurred by the company’s actions, punitive damages against Steve Wynn and recovery of all costs and expenses.

Two other similar lawsuits against Wynn Resorts are still pending. Following the initial reports of sexual misconduct, both the Norfolk County Retirement System of Massachusetts and the Operating Engineers Construction Industry and Miscellaneous Pension Fund launched their own lawsuits for virtually the same reasons.

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