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Elaine Wynn sues to gain control of stock

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Posted at 4:13 PM, Mar 28, 2016
and last updated 2016-03-28 19:13:30-04

Elaine Wynn filed a complaint Monday to gain control of her Wynn Resorts stock.

Ms. Wynn claims she is being denied her right to control her own stock by her ex-husband Steve Wynn, the company’s chairman and CEO, according to a statement.

Her complaint claims Mr. Wynn breached their January 2010 Stockholders Agreement by orchestrating Ms. Wynn’s ouster from the Board of Directors in retaliation for her asking questions about the “tone at the top,” the absence of appropriate internal controls, the withholding of information from the board and the "reckless" activity of the CEO and others in the company. She claims she is also unable to control her stock for bringing up these concerns.

In response to the complaint, Wynn Resorts issued a statement that says Ms. Wynn's "claims are consistent with the falsehoods and distortions she previously made against the company and its CEO Steve Wynn."

According to the Wynn Resorts statement, during the Board of Directors vote, Mr. Wynn did vote his shares according to the Stockholders Agreement but Ms. Wynn still lost reelection to the board.

Since being removed from the board, Ms. Wynn claims she has no "meaningful avenue to protect her substantial economic interest in Wynn Resorts, including any ability to raise issues concerning corporate governance."

Ms. Wynn also claims the Stockholders Agreement prevents her from transferring stock that she owns without the permission of Mr. Wynn and grants to Mr. Wynn all rights to vote her stock. She said it is invalid and unenforceable.