Statements by NYS Comptroller DiNapoli and NYC Corporation Counsel Carter on Judge's Denial of Wynn Resorts Motion to Dismiss Lawsuit

New York State Comptroller Thomas P. DiNapoli and New York City Corporation Counsel Zachary W. Carter today released the following statements in response to Judge Timothy C. Williams’ rejection of Wynn Resorts’ motion to dismiss their derivative lawsuit against the company. 

State Comptroller DiNapoli said: “I am pleased that Judge Williams sees the merits of our complaint and is permitting the case to move forward. Wynn Resorts’ Board of Directors let the Company and its shareholders down by failing to investigate or hold former CEO Steve Wynn accountable for his alleged misconduct. Mr. Wynn’s history of unchecked sexual harassment harmed employees and damaged the company’s reputation and our investments. We look forward to pursuing our lawsuit and pushing for effective corporate governance reforms that will create a safe workplace for Wynn Resort’s employees and protect the long-term prosperity of the company.” 

Corporation Counsel Zachary W. Carter said: “We made a strong case that the Wynn Resort Board turned a blind eye to Mr. Wynn’s misconduct and we are pleased the Court is allowing this case to proceed. As shareholders in Wynn Resorts, the New York City Pension Systems and Funds have a vested interest in ensuring a safe workplace for the company’s employees and protecting the long-term value of the company. Steve Wynn’s misconduct has harmed Wynn Resorts’ most valuable assets, its employees and gaming licenses, and we will continue to vigorously litigate this lawsuit on behalf of the City pension Systems and Funds.”

 

A derivative lawsuit allows shareholders to take legal action on behalf of a corporation when the company's officers or directors have not met their obligations as fiduciaries to protect the company and its shareholders. The operative complaint, filed by the New York State Common Retirement Fund and New York City Retirement Systems and Pension Funds on March 23, 2018, alleges that current and former Wynn Resorts' officers and directors failed to act on knowledge that former CEO Stephen Wynn made repeated unwanted sexual advances toward employees and pressured employees to perform sex acts. Surviving the defendants’ motion to dismiss means the plaintiffs have adequately pleaded that the board faces a substantial likelihood of liability for breaching its fiduciary duty.

The New York State Common Retirement Fund is the third-largest public pension fund in the United States with estimated assets of $207.4 billion as of March 31, 2018. The Fund holds and invests the assets of the New York State and Local Retirement System on behalf of more than one million state and local government employees and retirees and their beneficiaries. The Fund has consistently been ranked as one of the best managed and best funded plans in the nation. The Fund's fiscal year ends March 31, 2018.

The New York City pension funds, consisting of the New York City Employees' Retirement System, New York City Teachers' Retirement System, New York City Police Pension Fund, New York City Fire Department Pension Fund, and New York City Board of Education Retirement System, are collectively the fourth largest pension system in the United States with more than $192 billion in assets under management.

CONTACT: Nick Paolucci /212-356-4000