Steve Wynn is gone, but his company's board is still under scrutiny

Steve Wynn is out at Wynn Resorts, but the company he founded and its board of directors are still under scrutiny....

Posted: Feb 8, 2018 11:31 AM
Updated: Feb 8, 2018 11:31 AM

Steve Wynn is out at Wynn Resorts, but the company he founded and its board of directors are still under scrutiny.

Wynn and the company's nine remaining board members were hit with a shareholder lawsuit on Tuesday afternoon.

The complaint claims the board "knowingly turned a blind eye to allegations of patently egregious misconduct" by Wynn, and that their actions, or lack thereof, constituted "egregious breaches of fiduciary duty."

Wynn stepped down as CEO and board chairman Tuesday evening, citing an "avalanche of negative publicity" that he claimed made it impossible to do his job.

Wynn's departure has not resolved the problems facing Wynn Resorts since the Wall Street Journal detailed numerous allegations of sexual misconduct against Wynn in a lengthy investigation. The two states where Wynn has casino licenses are conducting investigations, and lawsuits against the company could drag on for years.

"They're in a tough spot, because [Wynn's] name is on the door," said Charles Elson, who studies corporate governance at the University of Delaware.

Related: How much is Steve Wynn's exit package worth?

The shareholder suit, which comes from the Massachusetts-based Norfolk County Retirement System, was filed in Clark County District Court in Nevada shortly before Wynn's resignation was announced.

Wynn Resorts declined to comment on the lawsuit. Wynn has denied all charges against him, calling them "preposterous."

More legal action could be coming. Other law firms have said they're exploring possible shareholder suits, and have urged people who own stock to contact them.

Then there are the pending state investigations into the company. Officials in Massachusetts and Nevada that oversee the company's gaming licenses are still looking into allegations of sexual misconduct against Wynn.

In a statement, the Massachusetts Gaming Commission said Wednesday that it needs to assess the "overall impact and implications" of Wynn's resignation, but that its probe is ongoing.

Wynn Resorts is developing a massive resort and casino in Boston Harbor that's set to open in 2019.

Related: Massachusetts Steve Wynn probe hinges on $7.5 million settlement to manicurist

The Nevada Gaming Control Board said in a statement Wednesday that it plans to "continue with its investigation."

On top of all that, the Wynn Resorts board of directors has to complete its own investigation into Wynn's behavior.

The board formed a special committee to look into claims against Wynn after the Journal story was published. It's headed by Patricia Mulroy, the company's only female director.

Now that Wynn has resigned, the board's investigation is even more urgent, said Betsy Atkins, a corporate governance expert who currently serves on the boards of Schneider Electric, HD Supply, Cognizant and Volvo.

"It will definitely affect the severance negotiation and the exit package," Atkins said.

It's not clear how much money Wynn will receive on his way out the door. The company has indicated that some kind of severance is on the table.

"Details of Mr. Wynn's separation agreement will be disclosed when they are finalized," the company said in its press release announcing the leadership change.

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 48201

Reported Deaths: 2693
CountyConfirmedDeaths
Marion11624683
Lake5146242
Elkhart328546
Allen2762129
St. Joseph194366
Cass16389
Hamilton1552101
Hendricks1403100
Johnson1278118
Porter72837
Tippecanoe7158
Madison65864
Clark65144
Bartholomew58544
Howard57557
LaPorte57326
Kosciusko5464
Vanderburgh5226
Marshall4924
Noble47828
Jackson4703
LaGrange4708
Hancock44835
Boone44243
Delaware44250
Shelby42525
Floyd37944
Morgan32931
Grant29426
Monroe29428
Montgomery29420
Clinton2892
Dubois2736
Henry26315
White26310
Decatur25032
Lawrence24425
Dearborn23623
Vigo2348
Warrick21429
Harrison21322
Unassigned193193
Greene18832
Miami1822
Jennings17611
Putnam1698
DeKalb1624
Scott1607
Daviess14317
Wayne1386
Orange13623
Steuben1292
Perry1279
Franklin1248
Jasper1212
Ripley1167
Wabash1122
Carroll1102
Fayette997
Newton9810
Starke933
Whitley925
Huntington812
Gibson802
Randolph794
Jefferson722
Wells721
Fulton701
Jay680
Washington671
Knox640
Pulaski641
Clay604
Rush583
Adams501
Benton480
Owen471
Sullivan441
Brown391
Posey390
Spencer381
Blackford372
Crawford320
Tipton321
Fountain312
Switzerland270
Parke230
Martin220
Ohio170
Vermillion140
Warren141
Union130
Pike110

Ohio Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 57150

Reported Deaths: 2911
CountyConfirmedDeaths
Franklin10271422
Cuyahoga7724373
Hamilton5924197
Marion273238
Lucas2723302
Pickaway219141
Summit2131206
Montgomery198126
Mahoning1825232
Butler157644
Columbiana130360
Stark1107112
Lorain102167
Trumbull93965
Warren83921
Clark7659
Delaware56815
Fairfield55916
Tuscarawas55210
Belmont54622
Medina51632
Lake49718
Licking47712
Miami46331
Portage44058
Ashtabula43344
Wood42151
Geauga40542
Clermont4006
Wayne36251
Richland3375
Allen31540
Mercer2818
Greene2519
Darke24825
Erie24222
Holmes2313
Huron2152
Madison1958
Ottawa14323
Crawford1355
Sandusky13414
Washington13220
Putnam12815
Ross1243
Hardin12312
Morrow1161
Auglaize1064
Coshocton972
Monroe8917
Jefferson872
Union851
Muskingum831
Hancock781
Hocking788
Preble731
Guernsey703
Lawrence700
Williams702
Clinton680
Shelby684
Logan621
Fulton610
Ashland591
Carroll593
Wyandot586
Athens561
Brown561
Knox511
Defiance503
Fayette460
Highland451
Champaign401
Scioto380
Perry341
Van Wert340
Seneca332
Henry290
Jackson230
Paulding230
Pike230
Adams221
Vinton222
Gallia171
Harrison121
Meigs120
Morgan110
Noble110
Unassigned00
Fort Wayne
Clear
72° wxIcon
Hi: 93° Lo: 70°
Feels Like: 72°
Angola
Scattered Clouds
64° wxIcon
Hi: 92° Lo: 68°
Feels Like: 64°
Huntington
Clear
72° wxIcon
Hi: 91° Lo: 69°
Feels Like: 72°
Decatur
Clear
72° wxIcon
Hi: 92° Lo: 70°
Feels Like: 72°
Van Wert
Clear
72° wxIcon
Hi: 93° Lo: 71°
Feels Like: 72°
Few Storms Tuesday
WFFT Radar
WFFT Temperatures
WFFT National

Community Events