New York-based law firm Pomerantz LLP has filed a motion for preliminary approval on a $70 million settlement against Wynn Resorts Ltd. Hundreds of shareholders will split the class action settlement stemming from allegations that the company didn’t disclose the sexual misconduct of former CEO Steve Wynn. Shareholders of Wynn Resorts Ltd. allege their stock shares plummeted as a result of the 2018 sexual misconduct allegations and the failure of Wynn executives to announce any information once they were made aware of the allegations.
The case centers around misleading statements made by Wynn Resorts between March 28. 2016, and February 12, 2018. This was just weeks after media reports about the sexual harassment scandal were published. The complaint alleges defendants were aware of numerous allegations of sexual misconduct made against the former CEO over the span of several decades and defendants repeatedly denied those allegations and helped to cover them up.
Share prices saw a drastic decline in price after the scandal surfaced, dropping from $200 a share in 2018 to around $96 a share a year later. Currently, the stock is trading for around $80 a share.
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