Home Stocks Sexual Misconduct Allegations Against Steve Wynn Sink Wynn Resorts Stock

Sexual Misconduct Allegations Against Steve Wynn Sink Wynn Resorts Stock

Allegations of sexual misconduct have been leveled against Wynn Resorts CEO Steve Wynn. Multiple employees and others accuse him of sexualizing his workplace and pressuring them to perform sex acts, although he denies all the accusations of sexual assault, calling them “preposterous.” Shares of Wynn Resorts started tanking immediately after the allegations against Steve Wynn were reported.

Manicurist raises allegations against Steve Wynn

The Wall Street Journal outlines a series of sexual misconduct allegations against Steve Wynn, starting with an account from a manicurist who worked at Wynn Las Vegas. She reportedly told a colleague at the on-site salon in 2005 that the Wynn Resorts founder had forced her to have sex not long after he opened the resort.

According to the WSJ, she said went to his office for an appointment, and after giving him a manicure, she claims he pressured her to remove her clothes and lie on the massage table. She said that although she told him that she was married and did not want to have sex, he kept demanding that she do it. She ended up disrobing and they had sex, the WSJ reports, citing those she told not long after the incident.

Her supervisor reportedly filed a report with the human resources department at the casino after the woman told her what happened. However, the WSJ said Wynn paid the manicurist $7.5 million to settle the case, citing sources familiar with the incident.

Lawsuit also references allegations against Steve Wynn

According to the WSJ, a lawsuit between Wynn and his ex-wife Elaine referenced the incident “in broad terms.” Ms. Wynn is trying to lift restrictions that have been placed on the sale of her Wynn Resorts shares, and Mr. Wynn’s attorneys admitted in a court filing that he had personally paid the manicurist to settle the allegations. At a hearing later, a corporate attorney mentioned “allegations of assault,” the Journal adds, saying that court documents from the lawsuit between the Wynns are “heavily redacted.”

Mr. Wynn said in a written statement that “the idea” that he had “ever assaulted any woman is preposterous.” He also alleged that the accusations are being instigated by his ex-wife Elaine, which he claimed to be “involved in a terrible and nasty lawsuit in which she is seeking a revised divorce settlement.” Ms. Wynn’s attorney denies that she instigated the WSJ’s article regarding the allegations against Steve Wynn.

Wynn Resorts stock tanks on report

The manicurist isn’t the only one to raise sexual misconduct allegations against Steve Wynn, according to the news outlet. The WSJ reports that “dozens” of workers and former employees at his casinos “told of behavior that cumulatively would amount to a decades-long pattern of sexual misconduct by Mr. Wynn.”

After the WSJ’s report, shares of Wynn Resorts stock tanked, falling by more than 8% to as low as $180.18 in intraday trading on Friday. Mr. Wynn holds a 12% stake in the company, which has emphasized his importance to its operations.

In a securities filing which referenced potential risks to its business, Wynn Resorts wrote, “If we lose the services of Mr. Wynn, or if he is unable to devote sufficient attention to our operations for any other reason, our business may be significantly impaired.”