Oregon sues Steve Wynn after allegations of sexual abuse

The Oregon shareholder lawsuit claims that the company failed to investigate allegations of sexual abuse and harassment by former Chairman and CEO Steve Wynn, causing damage to the company and to long-term shareholder value.

Oregon State Treasurer Tobias Read and Attorney General Ellen Rosenblum announced Wednesday a lawsuit against Steve Wynn and the board of directors of Wynn Resorts for breaches of fiduciary duty.

The state, through its Public Employees Retirement Fund, had invested in Wynn Resorts. As of Nov. 30, the Public Employees Retirement Fund held 8,506 shares of Wynn Resorts worth $1.3 million. The Oregon shareholder lawsuit claims that the company failed to investigate allegations of sexual abuse and harassment by former Chairman and CEO Steve Wynn, causing damage to the company and to long-term shareholder value.

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Background: Casino tycoon Steve Wynn resigns, citing 'avalanche' of bad publicity

The civil case, filed Tuesday in District Court in Clark County, Nev., also "cites millions of dollars in unjust enrichment to company leadership," according to a release from Read and Rosenblum.

“Corporate wrongdoers are legally responsible when they commit or cover up sexual harassment in the workplace,” Rosenblum said in the release. “In this lawsuit, we claim that Mr. Wynn's previously unreported bad conduct resulted in a reduction in the value of the state's investments in his properties. We are pleased to represent the Oregon Public Employees Retirement Fund and Treasurer Read in attempting to recover these losses for Oregon.”

Wynn stepped down from his roles at the company in February after multiple allegations of sexual abuse and harassment by Wynn Resorts employees were leveled against him. He is facing lawsuits from a manicurist and two massage therapists, as well as five other derivative shareholder lawsuits.

Wynn, whose estimated worth is $2.5 billion and who has donated millions to the GOP, also stepped down as the Republican National Committee's finance chair in January.

The Oregon complaint states that the board of directors did nothing to stop Wynn's alleged sexual predation despite knowing of the allegations since at least 2016.

Wynn Resorts share value fell 16 percent in January following news coverage of the allegations and have yet to recover.

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"As a responsible shareholder, (the Oregon) Treasury engages with corporations, boards and executives to facilitate the profitable and sustainable long-term growth of Oregon’s investment portfolios," the release states. "If alleged wrongdoing results in material investment losses or other negative impacts to shareholders, Treasury works with the Oregon Department of Justice to recoup losses and enforce accountability through securities litigation."

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