UPDATE: $2.6 billion settlement by Wynn Resorts may free up founder to exit stake
By Kate O'Keeffe , Alexandra Berzon and Chris Kirkham
Resolution of lingering litigation may allow Steve Wynn to sell his shares
Steve Wynn resigned last month as the chairman and chief executive of the casino company that bears his name. On Thursday, Wynn Resorts Ltd. took a step that could eventually allow him to end his status as the company's largest shareholder, too.
His 12% stake has left him and the company subject to additional scrutiny by regulators in Nevada and Massachusetts, who are investigating allegations that he engaged in sexual misconduct against employees. But he has been prevented from selling his Wynn Resorts stock by a complex shareholder agreement among him, his ex-wife and a former business partner that dates to 2010.
On Thursday. Wynn Resorts (WYNN) moved to resolve the standoff by agreeing to pay $2.6 billion to settle litigation with Universal Entertainment Corp. (6425.TO) , a Japanese company that was forced by Wynn in 2012 to give up its 20% stake in the casino giant, according to a statement from Universal's lawyers, Buckley Sandler LLP.
Wynn Resorts has been under increased pressure to resolve the Nevada legal dispute after a Wall Street Journal investigation published in January detailed allegations that Wynn sexually harassed and assaulted employees.
An expanded version of this report appears on WSJ.com (https://www.wsj.com/articles/wynn-resorts-to-pay-universal-entertainment-to-settle-litigation-1520551385?mod=mktw).
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-Kate O'Keeffe ; 415-439-6400; AskNewswires@dowjones.com
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03-09-18 0240ETCopyright (c) 2018 Dow Jones & Company, Inc.