Another group of Wynn stockholders is seeking legal retribution following the wave of sexual misconduct allegations against the company’s former chairman and CEO.
A 62-page derivative complaint filed late Thursday against Steve Wynn, the company’s board of directors and general counsel was filed on behalf of the Boynton Beach Municipal Firefighters’ Pension Trust Fund and the Firemen’s Retirement System of St. Louis.
The lawsuit alleging breach of fiduciary duties cites a Jan. 25 story in the Wall Street Journal along with subsequent media reports that uncovered various sexual, physical and verbal harassment allegations against Wynn, and points out that “institutions with which Steve Wynn — and by extension, Wynn Resorts — has historically been associated through Steve Wynn’s philanthropic work have distanced themselves from him in the wake of the allegations against him.”
The latest complaint, the third filed in a little more than a week, also hints at stories of sexual misconduct allegations across the country, while arguing that company’s board should have acted to stop Wynn.
“The story of Steve Wynn is a cliché: a powerful man preying on the powerless. But the Directors of Wynn Resorts were not powerless,” the lawsuit filed by the Las Vegas firm Eglet Prince states. “They were the only people with the knowledge and ability—and the duty to the Company—to investigate and stop Steve Wynn’s misconduct. They chose, instead, to be complicit with Steve Wynn and use Company resources to attempt to cover up his behavior out of self-interest.”
The same law firm also filed suit earlier Thursday on behalf of the Operating Engineers Construction Industry and Miscellaneous Pension Fund. Last week, the Norfolk County Retirement System of Massachusetts filed a similar complaint in Clark County District Court.
A shareholder derivative lawsuit, brought by a shareholder on behalf of a corporation, generally is filed when the corporation has a valid cause of action but has refused to use it, according to the Legal Information Institute at Cornell University.