UPDATE JAN. 27: An investigation is being launched into the behavior of Steve Wynn according to an email sent to 13 Action News on Friday night. The email reads:
The Board of Directors of Wynn Resorts met today and formed a Special Committee of the Board comprised solely of independent directors to investigate allegations contained in the January 26, 2018 Wall Street Journal article. The Special Committee will be chaired by Ms. Patricia Mulroy, a member of the Board’s Corporate Governance and Compliance Committees and a former member of the Nevada Gaming Commission. The Board is deeply committed to ensuring the safety and wellbeing of all of the Company’s employees and to operating with the highest ethical standards.
There has already been a business impact in the hours after the allegations went public. Wynn Resorts stock was hammered in yesterday's trading, plunging more than 10 percent.
Steve Wynn has been accused of sexual misconduct by dozens of employees, according to a report by The Wall Street Journal.
The Wynn Resorts CEO denied the accusations, saying "the idea that I ever assaulted any woman is preposterous."
"We find ourselves in a world where people can make allegations, regardless of the truth, and a person is left with the choice of weathering insulting publicity or engaging in multi-year lawsuits. It is deplorable for anyone to find themselves in this situation."
Multiple women accused Wynn of pressuring them into sex and sexualizing the workplace.
According to The Wall Street Journal, one employee received a $7.5 million settlement after she said Wynn pressured her into having sex with him in 2005, the same year Wynn hotel-casino opened. In addition, the report states that Wynn asked massage therapists to perform sexual acts on him for $1,000 tips.
In his statement, Wynn indicated that his ex-wife, Elaine Wynn, is the instigator of the allegations.
"The instigation of these accusations is the continued work of my ex-wife Elaine Wynn, with whom I am involved in a terrible and nasty lawsuit in which she is seeking a revised divorce settlement. Elaine has explicitly threatened to slander and destroy me and I am surprised that the media is allowing itself to be used to advance this agenda. The conduct of Elaine during the course of the pending lawsuits has been shocking and deeply disturbing to me personally and as the CEO of Wynn Resorts.
"Despite such conduct, I have repeatedly refused to capitulate to her demands. In response, I remain focused on Wynn Resorts, our employees and our shareholders and will not be distracted from those efforts."
Just this week, Wynn announced he is developing a new hotel on the Las Vegas Strip. Stocks of Wynn Resorts dropped 10 percent Friday after The Wall Street Journal report.
According to CNBC, the Massachusetts Gaming Commission is now reviewing Wynn's development set to open in the state next year.
In a statement, Wynn Resorts also indicated that Elaine Wynn's legal battle is behind the allegations.
"It is noteworthy that although Ms. Wynn says she knew about the 2005 allegations involving Mr. Wynn in 2009, she never made them known to the board of directors, of which she was then a member, and she did not raise them until after Mr. Wynn remarried and the shareholders of Wynn Resorts voted not to elect her to the board."
Wynn Resorts also stated, "The company requires all employees to receive annual anti-harassment training and offers an independent hotline that any employee can use anonymously, without fear of retaliation. Since the inception of the company, not one complaint was made to that hotline regarding Mr. Wynn."
In addition to being CEO of Wynn Resorts, Wynn is also the Republican National Committee's finance chairman.
This is a developing story. Check back to 13 Action News for updates.