Hundreds of shareholders of Wynn Resorts Ltd. are set to share a $70 million settlement from a class-action lawsuit related to allegations that the company failed to disclose sexual misconduct claims against former CEO Steve Wynn.
According to the Las Vegas Review-Journal, the lawsuit, initiated by shareholders who assert that their stock value plummeted following these allegations, claims that Wynn executives did not act upon the misconduct reports once they became aware.
The settlement, announced earlier this month, is now pending preliminary approval from the U.S. District Court in Nevada, following a motion filed by New York-based law firm Pomerantz LLP.
The lawsuit was brought by shareholders John and JoAnn Ferris and Jeffrey Larsen against the company, Steve Wynn, four former executives, and nine former board members. Notably, all current executives named in the suit have been dismissed, and Steve Wynn is no longer with the company.
While the settlement amount is confirmed, details on individual payouts for shareholders remain uncertain. A representative from Pomerantz LLP stated that each shareholder filing a valid claim will receive a pro rata share of the net settlement fund, although it’s unclear how much that will amount to after legal fees and costs are deducted.
Wynn Resorts expressed satisfaction with the resolution, stating that the settlement addresses the final legal issues involving Steve Wynn, who resigned in 2018 amid the allegations. The company noted that most of the settlement will be covered by insurance, with Wynn Resorts contributing $9.4 million.
The underlying case highlights alleged misleading statements made by Wynn Resorts between March 2016 and February 2018, coinciding with media revelations about Wynn’s misconduct.
