Wynn Resorts former CEO and chairman Steve Wynn has agreed to pay $41 million as part of a settlement from lawsuits with shareholders.
Wynn himself will be paying $20 million in damages while another $21 million will come from insurance carriers on behalf of current and former employees of Wynn Resorts.
Shareholders had accused company directors of failing to disclose Wynn’s alleged pattern of sexual misconduct. They alleged some officers and directors knew the founder and chairman of Wynn Resorts had made unwanted sexual advances on employees and pressured them to perform sex acts, but did not disclose the alleged pattern of sexual misconduct.
“We filed our lawsuit in response to serious and repeated allegations of sexual misconduct by Steve Wynn and the prior board’s alleged failure to stop it,” said New York Comptroller Thomas DiNapoli, who is in charge of that state’s $209 billion retirement fund.
“We are gratified that the reforms in this agreement and those undertaken following the initiation of our lawsuit will protect Wynn resorts employees and shareholders against future harm,” he said Wednesday.
Wynn has denied all allegations of misconduct and resigned from the casino company in February 2018.
The deal now has to be approved by a Las Vegas judge.
Wynn Resorts says neither it nor its current or former directors or officers were found to have committed any wrongdoing in connection with the pending settlement.
The company said this past Wednesday that the settlement credits the company with $49 million for changes made since then, including new policies to protect workers and realignment of the board of directors with eight independent members, including four women.
Disclaimer: We have no position in Wynn Resorts, Limited (NASDAQ: WYNN) and have not been compensated for this article.