Last updated: 03:31 PM ET, Tue March 29 2016

Wynn Resorts Issues Response to Elaine Wynn's Amended Counterclaim

Hotel & Resort | Patrick Clarke | March 29, 2016

Wynn Resorts Issues Response to Elaine Wynn's Amended Counterclaim

Photo courtesy of Wynn Resorts

Wynn Resorts is in the midst of an ugly battle between chairman and CEO Steve Wynn and his ex-wife Elaine Wynn.

The latter recently filed an amended counterclaim accusing the former of engaging in risky conduct while running the Nevada-based hotel and casino operator.

According to the Wall Street Journal, Ms. Wynn's allegations against Mr. Wynn include relying on a public company to fund his lifestyle and failure to disclose to the board a personal payment he made to an employee who had once accused him of wrongdoing. 

In a statement issued Monday, Wynn Resorts called the allegations "patently false."

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The company's co-founder agreed.

"This lawsuit is filled with lies and distortions and is an embarrassment to Ms. Wynn and her counsel. This is simply an attempt to inflict personal pain on Mr. Wynn," Steve Wynn said in a statement issued through a spokesperson. "Ms. Wynn is a disappointed ex-wife who is seeking to tarnish the reputation of Wynn Resorts and Steve Wynn and their daughters."

In their respective statements, both Mr. Wynn and the company point out that Ms. Wynn was a member of Wynn Resorts' board of directors up until last year.

"In 2015, the independent directors of the Company chose not to re-nominate Ms. Wynn to the Wynn Resorts Board of Directors," Wynn Resorts said. "As a result, Ms. Wynn waged a campaign for her re-election and her efforts were soundly rejected by the company's shareholders. Although Mr. Wynn voted his shares pursuant to their Stockholders Agreement, Elaine Wynn lost the election, with only 7 percent of the votes cast for her by her fellow shareholders."

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"She never raised these issues, some of which are over a decade old, with her fellow directors during her 13 years of service," Mr. Wynn noted in a statement from his spokesperson.

Mr. and Ms. Wynn divorced back in 2010 and have been in an ongoing legal battle for the past four years as Ms. Wynn seeks to regain voting control over her shares.

However it could be some time before the matter is resolved with a jury trial scheduled to begin next February, according to the Journal.


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