Wynn Resorts Reaches $70M Settlement in Investor Class Action Lawsuit

The class action lawsuit was one of the most significant legal battles for Wynn Resorts. Allegations of sexual harassment cover-ups against the former CEO and other executives have sparked outrage among shareholders who say their investments have been negatively impacted. While the $70 million settlement still requires court approval, reaching it represents a major step toward ending a years-long legal battle.

Lawyers representing the investors noted that while they are confident in their claims, the settlement provides a sure and immediate recovery that might not be possible in further litigation. They also stressed that further litigation carries risks, including the possibility of receiving less compensation or none at all.

Notably, this is not the first legal settlement Wynn Resorts has reached in recent memory. Previously, the company and its subsidiary Wynn Las Vegas reached a settlement with the US Department of Justice in a financial irregularity case, according to which the company agreed to pay $130 million.

The charges related to violations related to bypassing traditional financial systems. As part of the agreement, Wynn Las Vegas entered into a non-prosecution agreement, admitting its wrongdoing. The company then issued $800 million in debt, part of which will go to pay the fine, and the rest will be used to pay off other debt obligations.

Steve Wynn himself, the former head of the company, has also been embroiled in litigation. In 2018, he resigned after allegations of sexual harassment became public. However, Wynn continues to deny all the allegations. In an attempt to protect his reputation, he filed a libel suit against the Associated Press, claiming that his name had been defamed in one of their publications.

However, a Nevada court recently dismissed his suit, marking another legal setback for Wynn.