Elaine Wynn sues to regain control of WYNN stock

Mar 30, 2016 11:34 AM

Elaine Wynn’s counterclaim against the resort company headed by her ex-husband Steve Wynn is riddled with “falsehoods and distortions.”

That’s the essence of the response by Wynn Resorts to the legal action filed Monday by Ms. Wynn as she continues an effort to regain control of the stock for which Steve Wynn has voting rights.

The couple was divorced in 2012 and they split the stock between the two of them. She was removed from the board of directors last year, but the voting rights agreement she wants a court to void was signed in 2010.

At the moment, Ms. Wynn owns 9.8 percent of the stock, while Wynn owns 11.8 percent. Both of their stakes are outranked by institutional investment firms that own more than both of the Wynns combined, according to the Wall Street Journal.

A company statement after the filing by Ms. Wynn said her “latest allegations regarding our board, its composition and its independence are simply not true and are rehashed from her previous unfounded statements.”

Monday’s complaint, which was filed in district court, said, “She had hoped . . . that the issues plaguing the operation of Wynn Resorts could be addressed through the proper corporate processes and channels.

But this has not occurred to her satisfaction.

The Wynns were cofounders of the company in 2000 and she was a member of the board since its beginning. Ms. Wynn launched a bitter but unsuccessful proxy battle last year to retain her membership on the board.

Phil Hevener has been writing about the Nevada gaming business for more than 30 years. Email: [email protected].