Steve Wynn (entrepreneur) - Legal

Legal

In the wake of a legal battle over an attempt by Wynn-controlled Mirage to build a casino in Atlantic City, NJ, Donald Trump filed a lawsuit claiming (among other things) that Wynn reportedly flipped a private investigator and used him as a double agent to secretly record conversations with Trump. The investigator, Louis Rodriguez, a former Los Angeles Police Officer and investigator for the IRS, claimed he had a change of heart because he felt that his investigative efforts were being used "in an immoral and unethical manner to cause financial harm" to Wynn and Mirage and thus turned "whistleblower". This lawsuit was settled on February 23rd, 2000. The two casino entrepreneurs have had an ongoing public feud, going back well before this incident.

In 1991, Dennis Gomes, the president of Wynn's Golden Nugget abruptly left his position to join Donald Trump's Trump Taj Mahal in Atlantic City, NJ, receiving a $1 million bonus in lieu of equity. Wynn filed suit against Trump and Gomes for breach of contract, as Gomes was contracted to work at the Nugget until 1992; this suit was settled in 1994. During that legal dispute, also in 1991, Trump and Gomes filed a countersuit against Wynn alleging that the casino mogul used harsh language against Gomes, and that he also used the company's contractors and its jet for personal reasons; harassed female employees; ordered executives to obtain the phone numbers of cocktail waitresses; and referred to blacks, and employees in general, as "niggers." Wynn's camp denied those allegations, implying that they were attempt to switch the focus of the lawsuit from Gomes and Trump to Wynn. Wynn does admit, though, that he has "a temper."

Since 2008, Wynn has been embroiled in a legal battle with Girls Gone Wild producer Joe Francis: Wynn accused Francis of owing him money, while Francis claimed that Wynn had threatened to kill him. On February 22, 2012, Clark County, Nevada judge Mark Denton ruled Francis damaged the reputation of Wynn as a result of defamatory statements and awarded Wynn $7.5 million in damages. On September 10, 2012, a jury again found in favor of Wynn, awarding him $20 million, and an additional $20 million in punitive damages the next day. Francis says he intends to appeal.

In January 2012, Wynn's former business partner and one-time majority shareholder Kazuo Okada filed suit to gain access to company documents related to Wynn's pledge to donate $135 million to the University of Macau Development Foundation, at the time that he was seeking Chinese government approval to build another resort in Macau. Subsequently, Wynn forcibly bought back Okada's $2.7 billion in shares at a steep discount. Okada has since filed several suits over these events. During the course of these disputes, Okada accused Wynn of violating the Foreign Corrupt Practices Act by donating the $135 million to the University of Macau. Wynn struck back, claiming that Okada himself violated the FCPA by gifting hotel rooms and other expenses to Japanese gaming regulators. An independent analysis of the situation by an FCPA-focused law firm suggests that neither of these claims carry much weight or are likely to be taken seriously - the "transparency and openess" the gift by Wynn "run counter to any assumption that a bribe was being paid." Similarly, Okada's corporation is arguably not American, and thus not subject to FCPA rules. In a March, 2013 SEC filing, Wynn noted that while the Okada lawsuits could cut into Wynn's profits, beyond an "informal" SEC inquiry into the Macau donation, there was no formal investigation underway.

In June 2012, Wynn's former wife, Elaine Wynn, filed a lawsuit to dissolve a shareholder agreement that restricts her from selling her shares in Wynn Resorts. Elaine Wynn owns 9.74 million shares of Wynn Resorts, reportedly worth over $1 billion. The shareholder agreement named in the claim says that Elaine Wynn must get written consent from Steve Wynn before selling shares.