Steve Wynn is free to sell his Wynn Resorts shares after a three-way stockholder agreement between he, ex-wife Elaine and former Wynn Resorts board member Kazuo Okada was ruled “invalid and unenforceable” by a Clark County District Court.
In a filing to the US Securities and Exchange Commission on Thursday, Wynn Resorts stated that, “Mr Wynn may seek to sell all or a portion of the common stock controlled by him pursuant to one or more registered public offerings in the open market … or in privately negotiated transactions.
“Any actions Mr Wynn or the other reporting persons might undertake may be made at any time and from time to time without prior notice and will be dependent upon Mr Wynn’s review of numerous factors, including, but not limited to: an ongoing evaluation of the company’s business, financial condition, operations and prospects; price levels of the common stock; general market, industry and economic conditions; regulatory considerations; the relative attractiveness of alternative business and investment opportunities; and other future developments.”
Thursday’s court ruling, made by the Eighth Judicial District Court in Clark County, Nevada, came after both Steve and Elaine Wynn presented a stipulation on Wednesday agreeing that the stockholder agreement was invalid in the wake of litigation against Okada being dropped earlier in the week.
Wynn Resorts withdrew its claim of breach of fiduciary responsibility against Okada on Monday.
The Okada lawsuit was first filed in 2012 after the company cited the Japanese gaming mogul as an “Unsuitable Person” amid allegations he provided improper hospitality at Wynn properties to Philippine gaming officials to the tune of US$110,000 in a bid to win favor for his Okada Manila project.
The removal of Okada from the board in 2012 was the catalyst for the company to redeem over 24 million shares of Aruze USA, at the time Wynn’s main shareholder and headed by Okada himself. A settlement agreement announced last week brought that matter to a close with Wynn agreeing to pay Aruze USA and its parent company Universal Entertainment almost US$2.5 million relating to the redemption notes and accrued interest.
The official overnight death of the three-way stockholder agreement also ends the legal dispute between Steve and Elaine Wynn. It is the latest in a remarkable chain of events initiated by last month’s Wall Street Journal exposé which detailed allegations of sexual misconduct by Wynn and ultimately led to him stepping down from the Wynn Resorts board.
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