Shareholders Sue Wynn Resorts for Not Investigating Sexual Misconduct
FOR THE WYNN
A bad week is getting worse for Wynn Resorts. Following the resignation of Steve Wynn as CEO after he was accused of sexual misconduct against his employees, shareholders are now suing the company’s board for failing to investigate the allegations before they hit the press. Reuters reported the lawsuit claimed that “a board representative” was told about Wynn’s alleged misconduct in 2009 and that the board had failed investors by not properly investigating the allegations. Shares in Wynn Resorts have tanked by nearly 20 percent since The Wall Street Journal’s first report on the Wynn allegations on Jan. 26.