Fontainebleau Las Vegas has filed a counterclaim against Wynn Las Vegas (WLV) in response to the latter’s recent contract infringement suit, the latest development in what has been a very public—and some may say catty—feud between the two Strip resorts.
In late February, WLV filed suit against Fontainebleau in Clark County District Court for allegedly breaching employment contracts on several occasions by attempting to poach executive talent before and after the resort opened last December.
WLV alleged in its claim that Fontainebleau had an “unhealthy obsession” with its employees and amenities, and sought at least $15,000 in damages as well as an injunction to prevent further poaching attempts.
Fontainebleau then fired back with a counterclaim of its own March 19, in which it argued that WLV was simply insecure at the idea of having to fend off new competitors.
The claim begins by quoting lyrics from the 1976 song “New Kid in Town” by the Eagles, and goes on to say that by going public with its suit, WLV has “confessed its inability to legitimately retain customers and talent, thus resorting to threats, intimidation, vexatious litigation, and other unlawful acts.”
Also included are screenshots of fiery text messages exchanged between Wynn Resorts CEO Craig Billings and Fontainebleau Development CEO Jeffrey Soffer, in which Billings called Fontainebleau Las Vegas President Brett Mufson a “rank amateur” who “hasn’t operated a lemonade stand, much less a complex operation” such as a Strip resort.
In response, WLV released a statement downplaying Fontainebleau’s arguments as “fictitious” and “clearly designed to incite social media chatter” rather than address the points made in the original suit.
It also noted that Fontainebleau has resorted to poaching because “they lack the ability to develop, and based upon numerous recent news reports, to retain talent,” which, given recent developments, may be objectively true–-in the last calendar year, Fontainebleau has seen the departure of more than 10 high-level executives.
This includes two presidents, two CMOs, two senior vice presidents of casino operations, a COO, a CTO and more.
Numerous reports, usually citing anonymous sources, have said that Soffer as well as Fontainebleau Development’s Chief Brand and Design Officer Peter Arnell are notoriously difficult to work with and have unrealistic expectations for operating a Strip casino. Arnell also reportedly strained a number of relationships with vendors and suppliers during the construction and design process.
Upon opening, the resort refused to tier-match new customers for its rewards program, which is viewed as a standard practice in Las Vegas for new casinos looking to gain a foothold and customer base. That decision was ultimately reversed in February.
