Elaine Wynn today unleashed a series of fresh allegations against her ex-husband, Wynn Resorts Ltd. CEO Steve Wynn, as she continued legal efforts to dissolve a 6-year-old stockholders agreement between them.
In a complaint filed in Clark County District Court, Elaine Wynn’s attorneys accused her ex-husband of engineering her removal from the company board of directors last year as “retaliation for her challenging his decisions and questioning his judgment.” The complaint also accused Steve Wynn of “reckless, risk-taking behavior” and said that when she was still on the board, she faced a “‘tone at the top’ that punished inquiry.”
Elaine Wynn made the allegations as she sought to undermine the validity of a January 2010 stockholders agreement that restricts her ability to sell shares. In 2012, she sued to dissolve that agreement, which became a key issue when she was removed from the Wynn Resorts board last year.
At the time, the company said Elaine Wynn’s lawsuit interfered with her ability to be an effective director, so it decided not to renominate her to the board. She promptly launched an intense campaign to keep her spot, but ultimately failed to secure enough votes from stockholders.
While she no longer has a seat in the boardroom, Elaine Wynn remains a major stockholder. She holds 9.4 percent of all outstanding shares, compared to 11.8 percent held by her ex-husband, according to the company.
Today’s complaint continued Elaine Wynn’s effort to rid herself of the stock restrictions imposed by the 2010 agreement.
Wynn Resorts characterized her claims today as “consistent with the falsehoods and distortions” she has made before.
“By any measure, Wynn Resorts has ascended to a position of unrivaled stature and it is a symbol of unquestioned excellence and quality the world over,” the company said in a statement. “Ms. Wynn's actions today run counter to the culture of everything Mr. Wynn has worked so hard to create.”
The filing also prompted a personal reaction from Steve Wynn, who released a statement via a spokesperson that denied Elaine Wynn’s claims.
“This lawsuit is filled with lies and distortions and is an embarrassment to Ms. Wynn and her counsel. This is simply an attempt to inflict personal pain on Mr. Wynn,” Steve Wynn’s statement said. “While none of these allegations have any relevance to the shareholder agreement in question, the common thread throughout the complaint is her concerted effort to malign and vilify every individual Ms. Wynn perceives to have slighted her.”