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Elaine Wynn Files Suit To Regain Control of Wynn Shares

By Chuckmonster on Monday, 28th March 2016 12:17pm
  » filed under Las Vegas  comments: 0


Elaine Wynn, co-founder of Wynn Resorts along with then husband Steve Wynn, has filed a lawsuit to regain control of her percentage of the ex-Wynn's community held shares. Her holdings are currently being voted for by Steve Wynn in accordance with the 2010 Stockholders Agreement outlined in their (second) divorce.

Ms. Wynn alleges that her ouster from a seat on Wynn's Board of Directors was architected by Mr. Wynn after she asked questions about "the tone at the top" of the company. Wynn Resorts countered that Ms. Wynn may have conflicts of interest regarding her nephew Andrew Pascal's purchase of the New Frontier (now the Alon resort) parcel across the street, a property Wynn Resorts was actively pursuing.

Ms. Wynn continues that his orchestration of her dismissal was a violation of their agreement, therefore the shares in the company that are rightfully hers should revert to her voting control.

Ms. Wynn and her legal team have released a statement, the entirety of which can be read here.

As a result of her removal from the Board, Ms. Wynn has no meaningful avenue to protect her substantial economic interest in Wynn Resorts, including any ability to raise issues concerning corporate governance. Because of Mr. Wynn and Wynn Resorts' failures to address this matter, Ms. Wynn has been left with no choice but to proceed with legal action to resolve her claims. This includes seeking a judicial determination that the January 2010 Stockholders Agreement, which purports to prohibit her from transferring stock that she owns without the permission of Mr. Wynn, and grants to Mr. Wynn all rights to vote her stock, is invalid and unenforceable as a matter of law.

Mr. Wynn also ousted his other co-founder of Wynn Resorts, Kazuo Okada, and reclaimed his stock after they had a disagreement over donations Wynn made to the University of Macau. Wynn Resorts countered that Mr. Okada was involved in improper business dealings related to securing a casino concession in Manila.

Steve Wynn purchased 1 million shares of Wynn stock on the open market in early December 2015 at a cost of $63.8 million dollars.


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