LAS VEGAS (CelebrityAccess) Top executives at Wynn Resorts are accused of “knowingly turning a blind eye” to CEO Steve Wynn’s sexual misconduct allegations, according to a lawsuit filed Feb. 6 by one of its shareholders.
Norfolk County Retirement Systems filed the suit at approximately the same time that Wynn stepped down from his position as the chief of the casino/resort network that bears his name. NCRS claims Wynn, top exec Kimmarie Sinatra and nine board members withheld accusations of Wynn’s alleged misbehavior from shareholders as the company sought gaming licenses around the world, according to the New York Daily News.
“His personal behavior in this type of situation has significant impact on the business,” Nicholas E. Chimicles, one of the attorneys for the system, told the Daily News.
The lawsuit claims the 76-year-old Wynn has several friends on the board who “conform to his will” and “violated their corporate responsibilities” by not investigating the allegations.
Joe Schmitt, an employment attorney with Minneapolis firm Nilan Johnson Lewis, told the Associated Press that he would not be surprised if Wynn Resorts faces more, similar lawsuits, even if there are no laws obligating companies to disclose interenal allegations of sexual harassment or settlements involving employment-related complaints.
“More importantly, in this case, the lawsuit is likely to result in a disclosure of the very facts that the company sought to keep confidential,” Schmitt told the AP.
Meanwhile, WYNN stock has actually surged. After a drop throughout Tuesday to around $163 per share, it opened Wednesday at $175 and was trading at about $173 at press time.