Wynn Resorts went through a lot of legal drama due to the sexual harassment claims made against founder and former CEO Steve Wynn. His misdeeds came to light in early 2018 after the Wall Street Journal released a damaging article that eventually caused Steve Wynn to resign.
Wynn Resorts thought it had put all of the drama involving Steve Wynn behind but it turns out there is still more to come. Wynn Resorts has been slapped with another lawsuit, this time filed by nine former employees of Wynn Salon.
The latest sexual harassment lawsuit is the second filed against the company in less than a week. The plaintiffs worked as manicurists and makeup artists for Wynn Salon between 2004 and 2008, and allegedly became victims of multiple instances of sexual misconduct and personal degradation committed by the former casino mogul.
The complainants were left with no choice but to file the lawsuit after Wynn Resorts failed to fulfill its obligations in relation to discrimination charges previously filed by the plaintiffs with the Equal Employment Opportunity Commission and Nevada Equal Rights Commission.
According to Wynn Resorts, the claims in the latest lawsuit appear to have already been properly investigated by regulators and the special committees tasked by the company to specifically investigate sexual harassment allegations against Steve Wynn. Since the conclusion of those investigations, the company said it has not received any new claims of this type.
Allegations Against Steve Wynn
In January 2018, a report published in The Wall Street Journal exposed decades-long sexual harassment and abuse experienced by Wynn employees due to Steve Wynn’s exploits. A month after the bombshell, Wynn quit his post but continuously denied the allegations.
In the wake of the scandal, Wynn Resorts immediately formed a special committee on January 26, 2018, comprised of independent directors, to conduct a thorough investigation on the allegations. In August 2018, the committee made its final presentation on its findings to the board. The findings were then submitted to gambling regulators in Nevada, Massachusetts, and Macau, even though all three regulators also conducted their own investigation into the case.
Massachusetts officials released a report in 2019 which showed that executives at Wynn Resorts did cover up complaints against billionaire Steve Wynn. Top-ranking officials at the company failed to adhere to company policy imposing zero-tolerance against sexual harassment. Moreover, the allegations had not been fully disclosed to the board and an investigation was not initiated.
Wynn Resorts was slapped with a record-setting $20 million fine by the Nevada Gaming Commission in Feb 2019 for its failure to investigate misconduct accusations against Steve Wynn.
Two Sexual Harassment Complaints in Less Than A Week
On September 26, Wynn employee Brenna Schrader brought a class-action lawsuit alleging that Steve Wynn forced her to perform sex acts on him. Among the other defendants indicated in the suit were former Wynn Resorts President Maurice Wooden and other unnamed corporations.
The second lawsuit, which was filed on September 30, in Clark County District Court, alleges that that Maurice Wooden warned salon employees against speaking to the media more than a week prior to Wall Street Journal’s expose.
The nine plaintiffs said that they were scared that the company might take some action against them if they told the truth and hence chose to keep their mouths zipped. When the Wall Street Journal released the story, salon employees were called to a mandatory meeting at the Wynn Country Club and were asked if any of them had been subject to sexual harassment by Steve Wynn. None of them came forward as they were both scared and embarrassed to admit in front of everyone that they were sexually harassed by Steve Wynn.
Each Plaintiff Wants $50k
The claims laid out in the 30-page complaint are as follows: discrimination based on sexual harassment; retaliation; invasion of privacy; negligent hiring and retention of top-level executives and HR personnel; and intentional infliction of emotional distress. The latest lawsuit requests that more than $50,000 in damages be paid to each plaintiff.
In response to the lawsuits, Wynn Resorts said the company is deeply committed to a fair and open work environment, adding that it promptly acts on every harassment complaint it receives.