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Disgraced casino mogul Wynn to pay $20M to settle shareholder suit

Wynn Resorts was fined $20M earlier this year in a separate action by the Nevada Gaming Commission for enabling the former CEO’s alleged sexual misconduct

Steve Wynn and the Wynn Las Vegas Resort (Credit: Getty Images)
Steve Wynn and the Wynn Las Vegas Resort (Credit: Getty Images)

Disgraced casino mogul and billionaire Steve Wynn is now set to pay $20 million in damages to settle a shareholder lawsuit after alleged sexual misconduct.

The damages that Wynn will pay, with an additional $21 million from insurance carriers for Wynn Resorts employees, must be approved by a Las Vegas judge, according to the Los Angeles Times. Wynn has repeatedly denied any wrongdoing in connection with the allegations.

The founder and former chief executive and chairman of Wynn Resorts Ltd. was pushed out last year, two weeks after the Wall Street Journal published allegations of sexual abuse compiled from interviews with more than 100 women employed at the resorts.

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A 2018 Nevada Gaming Control Board investigation followed. Shareholders filed a class-action lawsuit alleging the company failed to disclose the alleged misconduct, leading to a rapid devaluation of their shares. The Nevada Gaming Commission slapped a record $20 million fine on the company in February in a separate action for enabling that alleged misconduct.

In a statement issued late Wednesday, Wynn Resorts denied any wrongdoing connected to the settlement. As part of that settlement, the company agreed to several changes to governance. It has enacted new policies to protect employees and has separated the roles of chairman and chief executive. The company also now has four women on the board of directors, according to the statement.

The plaintiffs in the lawsuit include public pension funds from California, New York and Pennsylvania. New York State’s Common Retirement Fund holds $23 million in Wynn Resorts shares, according to New York Comptroller Thomas DiNapoli. [LAT] — Georgia Kromrei 

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