Court: D. Nevada
Case: 2:18-cv-00479
Wynn Resorts WYNN has been on a tear, rising 42.2% in the past three months and outperforming the Consumer Discretionary Select Sector SPDR Fund’s 11% return. With a market cap of $13.1B, the company’s luxury properties in Las Vegas and Macau remain key drivers of growth. Shares are now trading just 2.5% below their 52-week high, underscoring investor optimism despite recent EPS weakness in Q2. Still, the company faces an unresolved overhang: a $70M settlement tied to allegations that Wynn Resorts failed to disclose decades of misconduct by its founder, Steve Wynn.
Key Highlights
+42.2% three-month rally , versus +11% sector ETF .
+59% one-year gain , outpacing sector’s +19.8% .
Q2 revenue of $1.7B , in line with estimates.
Adjusted EPS of $1.09 , missing consensus by 9.2% .
$70M investor settlement tied to failure to disclose misconduct.
But Legal Settlement Still Weighs
Timeline Overview
Jan 26, 2018 — WSJ exposed misconduct allegations; WYNN dropped 18% .
Feb 6, 2018 — Steve Wynn resigned as CEO and Chairman.
Feb 13, 2018 — Additional allegations surfaced.
Apr 9, 2018 — Investors filed lawsuit over disclosure failures.
Sept 2024 — Wynn Resorts agreed to $70M settlement .
Allegations Include
Failure to disclose founder’s long-standing misconduct.
Suppressing complaints with NDAs and retaliation.
Misleading investors about governance risks.
Undermining confidence in corporate oversight.
Investor Update
The $70M settlement resolves litigation but highlights the lasting governance risks tied to Wynn Resorts’ past. While operational strength and luxury positioning continue to drive growth, investors must weigh corporate governance concerns against the stock’s strong momentum.
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[SRC] https://www.tradingview.com/news/11thestate:c78c04782094b:0-wynn-stock-outpaces-consumer-sector-yet-70m-misconduct-settlement-casts-a-shadow/