Wednesday, August 10, 2022

Wynn Resorts announces board changes amid scandal


Two members of Wynn Resorts’ board of directors have stepped down from the company, as lawsuits against the company’s founder and its members over sexual misconduct continue to mount.

In late January, Wynn was accused of alleged sexual misconduct with employees during his role at the helm of the company.

The founder and CEO, who denied the allegations, resigned from the company on February 6. He agreed to receive  no severance, or compensation, and will be required to leave his residence at the beginning of June.

He was also forced to quit his position as US Republican Party National Committee finance chair, an investigation has been launched by the Massachusetts Gaming Commission.

More recently, former company director Dr. Ray Irani and director Alvin Shoemaker have been named defendants in several lawsuits brought by shareholders, including the state of Oregon, who accused them and other board members of failing to act in the best interest of shareholders by ignoring what was described as a long standing pattern of sexual abuse of company employees by Wynn.

According to an SEC filing, Irani’s resignation is effective immediately. Shoemaker on the other hand has advised he will not stand for re-election at the expiration of his term at the company’s 2019 AGM, but will serve the remainder of his term.

Wynn Resorts reported strong operating results for the first two months of 2018, according to a company announcement this week.

Wynn Macau EBITDA is up roughly 28 percent year-on-year, while Wynn Palace EBITDA is up roughly 83 percent higher. Las Vegas EBITDA was down 11 percent year-on-year.

The announcement however did not cover the current investigations going on in Las Vegas, Massachusetts and Macau.

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