Wynn Resorts Limited
- Company Name
- Wynn Resorts Limited
- Stock Symbol
- Class Period
- February 28, 2014 to January 25, 2018
- Motion Deadline
- April 21, 2018
- Southern District of New York
The complaint charges Wynn Resorts and certain of its current and former officers and/or directors with violations of the Securities Exchange Act of 1934. Wynn Resorts owns and operates luxury hotels and destination casino resorts. The Company owns and operates Wynn Las Vegas and Encore in Las Vegas, Nevada, and Wynn Macau and Wynn Palace in Macau, China, and is currently constructing a new $2.4 billion property called Wynn Boston Harbor in Everett, Massachusetts.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse material information regarding the Company’s business and operations, including that the Company’s founder and CEO, Stephen A. Wynn (“Steve Wynn”), had engaged in a pattern of sexual misconduct with respect to Wynn Resorts employees, including instances of sexual assault, and that discovery of the foregoing misconduct would subject the Company to heightened regulatory scrutiny and jeopardize Steve Wynn’s tenure at the Company. As a result of these false statements and/or omissions, Wynn Resorts shares traded at artificially inflated prices of close to $250 per share during the Class Period.
On January 26, 2018, The Wall Street Journal published an article revealing detailed accounts of Steve Wynn coercing and pressuring Wynn Resorts employees into performing sex acts. According to The Wall Street Journal, “dozens of people . . . who have worked at Mr. Wynn’s casinos told of behavior that cumulatively would amount to a decades-long pattern of sexual misconduct by Mr. Wynn.” It was further revealed that Steve Wynn had paid a Wynn Resorts employee a $7.5 million settlement after being accused of forcing the employee to have sex with him. On the same day, the Board of Directors of Wynn Resorts announced it had formed a Special Committee comprised solely of independent directors to investigate the allegations. Following these revelations, the Massachusetts Gaming Commission announced that it would open a regulatory review into the Company over the sexual misconduct allegations reported in The Wall Street Journal article. On this news, the price of Wynn Resorts shares fell $20.31 per share, or more than 10%, to close at $180.29 per share on January 26, 2018.
On February 6, 2018, the Company announced in a press release the immediate resignation of Wynn as the Company’s CEO and Chairman of the Board. On February 13, 2018, media outlets reported that two women had filed new sexual misconduct reports concerning Steve Wynn with the Las Vegas Metropolitan Police Department alleging that he had sexually assaulted them in the 1970s. According to a statement released by the Las Vegas Metropolitan Police Department, one woman reported that Wynn assaulted her in Las Vegas and the other said she was assaulted in Chicago. On this news, the price of Wynn Resorts shares fell to $164.16 per share on February 14, 2018, a decline of $36.44 per share, or more than 18%, from the Company’s January 25, 2018 closing price.