LAS VEGAS (KTNV) — A class action lawsuit against casino mogul Steve Wynn and Wynn Resorts is being allowed to move forward.
New court documents obtained by Channel 13 show a district judge issued the order on March 1.
The lawsuit accused Wynn Resorts of securities fraud and claims shareholders lost money after the Wall Street Journal published an article in 2018 alleging Wynn sexually assaulted and harassed several employees over the course of a decade.
The plaintiffs allege company share prices dropped 10.12% that day. They also accuse company officers, board members, and other senior-level management members of knowing about those claims and hiding it to protect Wynn Resorts.
The suit is looking for compensation for investors who purchased Wynn stock from March 2016 until February 2018.
The order states this class action lawsuit could potentially include thousands of people, since Wynn Resorts had approximately 103.1 million outstanding shares and 13 million in average weekly trading volume during the period.
Wynn Resorts was fined $20 million in 2019 by Nevada gambling regulators for failing to investigate claims of sexual misconduct. At the time, it was the highest fine in state history.
Steve Wynn has denied all claims of sexual misconduct. The allegations also led to him stepping down as CEO from Wynn Resorts. Several women also filed lawsuits against Wynn, but a federal judge dismissed them, saying the women made "generalized and vague" allegations.
