March 26, 2018

Last month New York State Comptroller Tom DiNapoli announced the state's pension funds were suing Wynn Resorts over its handling of sexual harassment allegations against its former CEO, Steve Wynn.

New York City’s five public pension funds have joined a lawsuit spearheaded in February by the state comptroller’s office against Wynn Resorts, alleging the company’s leadership were aware of former CEO Steve Wynn’s alleged sexual misconduct but failed to address it, the city’s law department and comptroller, Scott Stringer, announced Monday.

The funds join state pension funds in bringing the derivative lawsuit in Nevada. The city’s pensions hold approximately $35 million worth of stock in Wynn Resorts. Collectively, the city and state funds claim $75 million in shares.

“As alleged in the complaint, the NYC Pension Funds have joined this action because the leadership of Wynn Resorts turned a blind eye to, and covered up, misconduct that lasted for decades,” Corporation Counsel Zachary Carter said in a statement. “Accordingly, this lawsuit seeks to hold the board and its directors accountable for failing to meet their fiduciary obligations to shareholders.”

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Representative for the office of the city comptroller declined to comment. Cohen Milstein Sellers & Toll represents both parties in the matter as outside counsel.

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