February 26, 2018

The departures of Harvey Weinstein and Steve Wynn under a cloud of sexual misconduct allegations is doing little to shield their namesake companies from the ire of New York officials.

Eric Schneiderman, the state attorney general, said Monday he’s continuing his investigation into the “egregious abuse” by Weinstein even as his company said it will file for bankruptcy. New York Comptroller Thomas DiNapoli said, meanwhile, that the public retirement fund he oversees will vote its Wynn Resorts Ltd. shares against all incumbent directors to punish them for not stopping Wynn’s behavior.

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DiNapoli, as head of the third-largest public retirement fund in the U.S., sued current and former Wynn board members and officers for breach of fiduciary duty. The board was aware since at least 2016 of the allegations against Wynn, brought up by his ex-wife in a lawsuit, and did nothing to stop his misconduct, the comptroller claims in a complaint filed last week.

The company said Feb. 12 it will expand its review of its internal policies and add directors amid criticism that its board was weak on corporate governance.

The full article can be read here.

Cohen Milstein Sellers & Toll PLLC represents the New York State Common Retirement Fund in the derivative action brought by Comptroller DiNapoli.