Elaine Wynn, ex-wife of Steve Wynn, in new court filings says the Wynn board of directors allows Chairman Steve Wynn to operate recklessly and unchecked.
Elaine Wynn wants the court rule overturn a 2010 shareholders agreement, which stops her from selling her shares in the firm. If she sells those shares, Steve Wynn would lose his effective control of them, and likely his hold on the Wynn board of directors.
Elaine Wynn says the Wynn board of directors does as Steve Wynn directs, which leads to reckless decisions and bad business moves.
Wynn Resorts denied the allegations.
“Ms. Wynn’s comments regarding our Board of Directors, their independence and their actions in this matter are false,” Wynn Resorts said in a release. “Our company has nine distinguished directors, seven of whom are independent under NASDAQ standards, each deeply committed to the best interests of our shareholders.”
Wynn Resorts also says her claims of improper spending by Steve Wynn are false.
“Mr. Wynn’s use of company assets is fully audited by both the Board and our external auditors, as well as completely outlined in our proxy statements,” it said.
Elaine Wynn’s renewed legal efforts come as the company sees its Macau operations struggling.
Wynn Resorts reported a sharp decline in betting is causing profits to fall in Macau, which is the company’s largest market.
For the first quarter, Wynn Resorts reported its earnings would be between $187 million and $195 million, which would be down from the $212.3 million it posted a year ago.
Despite the negative reports, at least one gaming analyst has issued a long-term positive outlook for Wynn Resorts, mostly based on anticipated guidance changes in 2017.
The summer opening of the Wynn Palace in Cotai, and other business moves should provide long-term stability and improvement, the report said.
