Shareholder lawsuit against Wynn Resorts dismissed

11 October 2012

By Tim O'Reiley

LAS VEGAS -- A shareholders lawsuit brought against the Wynn Resorts Holdings, LLC bboard of directors was dismissed Tuesday by U.S. District Judge James Mahan.

The Louisiana Municipal Police Employees' Retirement System brought the case in March, questioning the legality of the company's $135 million donation last year to the University of Macau and terms imposed when former 20 percent shareholder Kazuo Okada's stake was forcibly redeemed in February. The lawsuit, styled as a shareholder derivative action brought on behalf of the company against errant directors, claimed the moves had damaged the company.

Mahan threw out the case after the shareholders missed an Oct. 1 deadline to respond to dismissal motions filed by the directors in mid-September.

Major shareholder and director Elaine Wynn, the ex-wife of chairman and CEO Steve Wynn, filed separate papers that supported the rest of the board.