Former and current board members of Wynn Resorts, including founder Steve Wynn and CEO Matt Maddox, are facing a fresh shareholder lawsuit claiming the sexual harrassment allegations against Mr Wynn that have plagued the company in 2018 devalued stock.
According to a report in the Las Vegas Review-Journal, Nevada resident Bruce Bannister filed a lawsuit with the Clark County District Court on 27 November 2018 which alleges breach of fiduciary duty, aiding and abetting breach of fiduciary duty and civil conspiracy by the Wynn Resorts board.
Named in the lawsuit are Wynn, Maddox, former Executive Vice President, General Counsel and Secretary Kim Sinatra plus nine other former and current board members.
“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,” the lawsuit reads.
It adds that board members “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.”
The Las Vegas Review-Journal also reports that the Massachusetts Gaming Commission will hold a closed executive session on Thursday at which it will discuss its legal strategy after Steve Wynn recently filed a lawsuit to block release of the Commission’s report into sexual misconduct allegations.
The report is expected to play a key role in a looming suitability hearing into whether Wynn Resorts can hold a gaming license in the state.
Wynn stepped down from the Wynn Resorts board and later sold off his entire 12.1% stake in the company following allegations that he had pressured employees to perform sex acts during his time as Chairman.
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