Subject to court approval, the company agreed to pay $70 million to settle a class action lawsuit filed by investors who alleged Wynn Resorts, and its executives concealed sexual misconduct allegations
A class action lawsuit against Wynn Resorts and several of its former executives recently reached an important milestone. The legal claim against the company and some of its executives stemmed from sexual misconduct allegations that were allegedly concealed, misleading shareholders between 2016 and 2018.
Class Action Lawsuit Finally Reaches Settlement After More than Six Years
The class action legal claim was filed in 2018 and six years later, hit an important milestone after the two sides reached a settlement. On Wednesday, Wynn Resorts, its former CEO, Steve Wynn, along with other executives reached a $70 million settlement in Nevada federal court.
Investors who filed the class action lawsuit alleged that the company and its executives covered up sexual misconduct allegations against Steve Wynn and other senior-level figures. As a result, investors were misled between March 2016 and March 2018, the plaintiffs claimed.
The aforementioned $70 million settlement is subject to court approval. Still, if this approval is granted, the class action lawsuit can finally be settled, effectively coming to an end after more than six years in court.
The attorneys representing the plaintiffs, quoted by NEXT.io, revealed: “While Plaintiffs are confident in the merits of their claims, the Settlement provides certain, immediate recovery.” They added: “In contrast, continuing litigation would have inherent risks, including the risk of a diminished recovery or no recovery at all.”
Wynn Reached Another Settlement Recently
Recently, Wynn Resorts reached another settlement over different allegations. The company confirmed that its Las Vegs-based subsidiary, Wynn Las Vegas, agreed with the Department of Justice (DOJ) to forfeit $130 million, settling alleged financial offenses.
The DOJ released several examples of the alleged unlawful practices used by the operator. The legal hurdle saw Wynn Las Vegas enter a non-prosecution agreement, with the company admitting that it committed offenses to “circumvent the conventional financial system.”
Following the announced record forfeiture, Wynn issued $800 million in senior notes due in 2033. Upon confirming the issuing of the debt, the company revealed that the extra proceeds would be used for the $130 million settlement and also cover senior notes due in 2025, among other corporate expenses.
Defamation Lawsuit by Steve Wynn Against the AP, Dismissed
Claims about the concealed allegations of sexual misconduct resulted in fines for Wynn Resorts. The company was subject to penalties in Massachusetts as well as Nevada.
The company’s founder, Steve Wynn, resigned following the allegations in 2018. He has repeatedly denied the claims of sexual misconduct and even filed a defamation lawsuit against the Associated Press (AP).
In his legal claim, the executive argued that his name was defamed by the media outlet in light of a story that contained allegations of sexual misconduct by two women. Earlier this month, that lawsuit also came to an end after a court in Nevada dismissed the executive’s defamation lawsuit against the AP.
