Oregon Public Employees Retirement Fund, Salem, brought a shareholder lawsuit against Nevada gambling executive Stephen A. Wynn and the board of directors of Wynn Resorts Ltd. for alleged breaches of fiduciary duty that damaged the company and impaired long-term shareholder value, said the complaint filed Tuesday.
The complaint, filed in Clark County District Court in Las Vegas by the $74.9 billion pension fund, alleges that Mr. Wynn and nine current members of the board of directors failed to act in the best interests of shareholders and stop a pervasive pattern of sexual misconduct at the company.
The complaint alleges that for close to a decade, the board "remained willfully blind to the sexual predation" of Mr. Wynn, founder, former chairman and former CEO of the casino and hotel company. After information about Mr. Wynn's alleged conduct became public, the board aligned itself with Mr. Wynn and "in fact, for the next three years actively engaged in a scheme to conceal and cover up Steve Wynn's sexual assault and sexual harassment."
This is not the first lawsuit filed alleging breach of fiduciary duty based on Mr. Wynn's alleged sexual misconduct. In February, Thomas P. DiNapoli, the New York state comptroller and sole trustee of the $209.1 billion New York State Common Retirement Fund, Albany, sued Wynn Resorts' current and former executives and directors alleging breaches of fiduciary duty relating to allegations of misconduct by Mr. Wynn.
Michael Weaver, Wynn Resorts spokesman could not be reached for comment.