A shareholder suit announced Monday by the New York State Comptroller claiming willful neglect by Wynn Resorts officials, including its general counsel, for allegedly ignoring sexual harassment complaints against founder and former CEO Steve Wynn is the first to allege insider trading by company officials among a slew of investor complaints already filed against the casino operator.
The latest complaint, filed last week in Nevada state court by New York State Comptroller Thomas P. DiNapoli as trustee of the New York State Common Retirement Fund, claims that Wynn Resorts’ executive vice president and general counsel, Kimmarie Sinatra, and five members of its board of directors sold nearly $20 million in company stock at inflated prices while they were aware of the potentially damaging claims against Wynn.
The insider trading claims against members of Wynn Resorts’ board of directors were included to show that the suit should be approved as a derivative action, or one brought by shareholders on behalf of the company, because a majority of Wynn Resorts board members are too conflicted to bring legal action against the company themselves.
The New York State Comptroller’s Office is represented by General Counsel Nancy G. Groenwegen, Don Springmeyer and Bradley S. Schrager of Wolf Rifkin Shapiro Schulman & Rabkin LLP, and Julie Goldsmith Reiser, Kalpana Kotagal, and Eric S. Berelovich of Cohen Milstein Sellers & Toll PLLC.
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