Shareholder and consumer rights law firm Schubert Jonckeer & Kolbe has launched an investigation into whether several executives at Wynn Resorts acted improperly by issuing misleading statements and failing to implement adequate policies on sexual harassment in the workplace.
Schubert Jonckeer & Kolbe says that senior executives at the company may have “breached their fiduciary duties by failing to address Mr. Wynn’s problematic behaviors and criticism of their governance structure over the years. The company’s officers and directors may be responsible for causing significant financial and reputational harm.”
The firm will also investigate irregular pay for company executives, including a USD330 million severance package for Steve Wynn that “exceeds the upper parameter of acceptable amounts.”
The Wall Street Journal reported on January 26 that a number of women said Wynn harassed or assaulted them and that one case led to a $7.5 million settlement.
The newspaper also criticized the corporate governance structure of Wynn Resorts, which it said “ranks among the worst, not the best, of U.S. companies.”
The Las Vegas billionaire has vehemently denied the allegations, which he attributed to a campaign led by his ex-wife.
He also faces investigations by gambling regulators in two states.
Meanwhile, Wynn Resorts has hired a law firm to help investigate sexual misconduct allegations against casino mogul Steve Wynn, the company’s chairman and CEO. The company has also created a special committee to retain independent counsel and conduct an investigation on behalf of the board.
A statement by Los Angeles-based law firm O’Melveny & Myers LLP says it will assist the Wynn board’s special committee of independent directors with the inquiry.
The statement released Friday says investigators will set up a phone and web-based reporting line for current and former Wynn employees to provide information.
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