Wynn Resorts Stock Dives 8 Percent After Sexual Misconduct Investigation

Founder Steve Wynn is accused of dozens of sexually inappropriate requests

Last Updated: January 30, 2018 @ 7:39 AM

Shares of Wynn Resorts continued to crater on Monday, as the casino giant opened an investigation into accusations of sexual misconduct against founder Steve Wynn.

The corporation’s board of directors said a committee of independent administrators will be reviewing the accusations — which include one ex-employee saying Wynn pressured her into having sex.  The review will be spearheaded by Patricia Mulroy, a member of the Wynn board and a onetime member of the Nevada Gaming Commission.

Wynn Resorts were down big in early morning trading as a result, with shares falling more than 8 percent to about $165 a share. The slide started last Friday, after the Wall Street Journal reported dozens of accusations of misconduct against Wynn, spanning several decades. Shares have dropped 17.5 percent since the market opened on Friday.

Shares of Wynn Resorts continued sliding on Monday (per Google)

A manicurist told the WSJ that in 2005 shortly after the opening of his namesake Las Vegas casino, Wynn “pressured her to take her clothes off” and have sex, despite insisting otherwise and telling him that she was married. The woman filed a human resources complaint and was later paid a $7.5 million settlement, according to sources familiar with the matter.

The payment was pointed to in a lawsuit from Wynn’s ex-wife, Elaine Wynn, and admitted by Wynn’s attorney. Wynn Resorts, in a statement to the WSJ, said she is trying to “tarnish the reputation of Mr. Wynn in an attempt to pressure a revised divorce settlement.”

Another former employee told the WSJ she was forced to “massage his penis to climax.” Others pointed to inappropriate sexual requests and said the casino magnate would wear “extremely short shorts without underwear,” often sitting in a position where his genitals were exposed.

The 75-year-old builder behind the Bellagio and The Mirage, among other casinos, stepped down  as Republican National Committee finance chair, this past weekend.