A long-standing securities class action lawsuit against Wynn Resorts and several former executives has reached a $70 million settlement, pending court approval.
The lawsuit, initiated in 2018, accused Wynn Resorts and its leadership, including founder Steve Wynn, of violating federal securities laws by concealing sexual harassment allegations. Plaintiffs claimed this concealment led to material misrepresentations to shareholders between March 28, 2016, and March 12, 2018.
The settlement marks the conclusion of a six-year legal battle following 2018 media reports that revealed Steve Wynn’s alleged harassment of employees, which placed him at the forefront of the #MeToo movement.
The plaintiff’s attorneys said: “While Plaintiffs are confident in the merits of their claims, the Settlement provides certain, immediate recovery.
“In contrast, continuing litigation would have inherent risks, including the risk of a diminished recovery or no recovery at all.”
This settlement follows a ruling by the Nevada Supreme Court, which rejected Steve Wynn’s defamation lawsuit against the Associated Press. Wynn had sought to delay his appeal to the U.S. Supreme Court, but the request was denied.
If the settlement is approved, the $70 million fund will be distributed to eligible class members who purchased Wynn Resorts’ securities during the specified period and incurred losses.
This case is one of several legal and regulatory actions stemming from allegations against Steve Wynn. State regulators fined the company $20 million in February 2018 for failing to address the harassment claims, and the Massachusetts Gaming Commission later imposed a $35 million fine after finding that former executives had concealed the allegations.
Steve Wynn resigned as CEO and chairman of Wynn Resorts in February 2018 and has since denied all accusations. Also named in the lawsuit were former CFO Stephen Cuti, general counsel Kim Marie Sinatra, and ex-CEO Matthew Maddox.
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