Pomerantz Secures Final Approval of $70 Million Settlement in Landmark #MeToo Securities Class Action Against Wynn Resorts Ltd.

In January 2025, the United States District Court for the District of Nevada granted final approval to a $70 million settlement on behalf of defrauded investors in a securities class action against Wynn Resorts Ltd. in which Pomerantz is sole Lead Counsel.

Founded in 2002 by Steve Wynn, Wynn Resorts is a luxury hotel and casino operator known for its high-end destination resorts. The company’s portfolio includes Wynn Las Vegas and Encore in Las Vegas, Nevada; Wynn Macau and Wynn Palace in Macau, China; and Wynn Boston Harbor in Everett, Massachusetts. 

Plaintiffs alleged that Wynn management covered up a decades-long pattern of sexual misconduct by Steve Wynn, and publicly denied that Wynn had engaged in any misconduct.  The settlement is one of the largest— if not the largest—securities class actions tied to #MeToo-related allegations. Pomerantz Partner Murielle Steven Walsh leads the litigation.

Throughout the class period, the defendants allegedly misled investors by withholding information about Mr. Wynn’s misconduct.  The company’s misstatements include a 2016 press release issued in response to claims in a legal filing from Mr. Wynn’s ex-wife and co-founder of Wynn Resorts, Elaine Wynn, that directly accused Mr. Wynn of having engaged in serious misconduct against at least one employee on company property. The press release vehemently denied any wrongdoing and stated that any claims that the company had concealed information from its regulators were “patently false.”

On January 26, 2018, The Wall Street Journal published an article titled “Dozens of People Recount Pattern of Sexual Misconduct by Las Vegas Mogul Steve Wynn,” which exposed allegations that Steve Wynn had coerced several female Wynn Resorts employees into performing sexual acts.  According to the article, “dozens of people . . . who have worked at Mr. Wynn’s casinos” reported a decades-long pattern of sexual misconduct. Additionally, it revealed that Wynn had paid a multi-million settlement in 2005 to resolve rape allegations that had been made against him by a female Wynn staff employee. Shortly after the article was published, Wynn Resorts’ stock price plummeted sharply by more than 10%. 

In response to the Wall Street Journal exposé, the company issued another press release claiming that Elaine Wynn had instigated the damning article. It also stated that the company maintained a hotline for fielding claims of misconduct and that the hotline had never received a complaint regarding Mr. Wynn.

In spite of the company’s public denials, investigations were soon launched by the Nevada Gaming Control Board and the Massachusetts Gaming Commission. In response, Wynn Resorts’ Board of Directors announced the formation of a Special Committee, comprised solely of independent directors, to investigate the allegations. On February 6, 2018, Steve Wynn stepped down as CEO and Chairman of the Board, with Wynn Resorts announcing his immediate resignation in a press release.

On February 13, 2018, new allegations surfaced as two women filed complaints with the Las Vegas police accusing Mr. Wynn of sexual assault in incidents dating back to the 1970s.  Wynn Resorts’ stock again declined.

Pomerantz brought the securities class action against Wynn Resorts Ltd. to hold the company and its management accountable.  Securities class actions arising from #MeToo allegations against a corporate executive have had mixed results, with many such cases being dismissed.  In going after Wynn Resorts, the Firm was up against considerable odds and deep-pocketed defendants in a District Court in the State of Nevada, where casinos are the biggest industry. Throughout the litigation, a total of six judges recused themselves from the action.

Before obtaining this historic settlement, Pomerantz secured several coups in the litigation, including defeating defendants’ attempts to dismiss the claims and to shorten the class period.  Ms. Steven Walsh and her team also won a highly favorable discovery ruling that required the defendants to produce documents for a far longer time period and numerous additional custodians than what defendants were willing to produce.  They also soundly defeated defendants’ premature summary judgment motion on loss causation and damages.

In addition to the historic settlement, Pomerantz’s compelling – and successful – legal arguments in Wynn pave the way for investors to hold corporations and their executives accountable on #MeToo-related issues.

“After years of hard-fought litigation, we have achieved groundbreaking rulings on behalf of Wynn shareholders and now have secured an exceptional $70 million recovery for the Class.” says Ms. Steven Walsh. “This case should serve as a warning to corporations and their officers that talk is not, in fact, cheap. Investors care about corporate integrity and accountability, and companies that make statements to cover up or deny allegations of sexual or other misconduct by executives face a potentially steep financial reckoning.” 

According to Pomerantz’s Managing Partner Jeremy A. Lieberman, “The Wynn case adds to our firm’s solid history of making new law and achieving outstanding results on behalf of investors, against considerable odds. In this particular case, we have proven the securities laws can successfully be applied to matters of great import to investors, such as sexual harassment and ensuring a safe work environment for employees.”