Wynn Resorts is one of the casino developers and operators which has a lot on offer when it comes to news in the past several months and the never-ending flow of happening surrounding the brand seems to continue. Now it has been reported that one of the leading positions in the structure of the casino operator, the company’s Executive Vice President and General Counsel Kim Sinatra, is planning on stepping down from her position.
Ever since the last days of January, the casino developer has been in the center of attention in the international casino field and that is no surprise as the former Chief Executive Officer of the company was accused of alleged sexual misconducts at the work place involving workers. Immediately after the information surfaced there was a wave of investigations into the business of Mr. Wynn took the field by a storm. This is what caused him to file his resignation and step down from his leading role in the company he founded.
Shortly after the revelations Mr. Wynn decided to resign as the Finance Chairman at the US Republican National Committee but remained at his position that the allegations are false, claiming that this is a smear campaign related to his divorce proceedings. Over the span of the scandalous discoveries, several women of the casino staff claimed the gambling billionaire assaulted them while they were at their workplace. The first legal settlement which was then revealed amounted to $7.5 million and it involved a manicurist which used to be employed by Wynn Resorts.
Ms. Sinatra has been occupying the leading position in the structure of Wynn Resorts for the past 14 years and her responsibilities were significant over their span. However, effective 15th July she is no longer going to be among the leading figures of the company which is currently led by Matt Maddox, succeeding Mr. Wynn after his resignation. With the help of a filing with the Securities and Exchange Commission, Ms. Sinatra declared her desire to leave her current position.
Wynn Resorts Draws Attention Once Again
What should be taken into account when it comes to her, is that she is one of the key witnesses in the investigation of the sexual misconduct instances. According to the information given by Mr. Wynn ex-wife Elaine Wynn, who is currently the largest shareholder in the company, Ms. Wynn informed Ms. Sinatra about the sexual harassment lawsuit which was later settled with the help of a $7.5 million arrangement.
The said settlement took place in 2005 and according to the position of Ms. Sinatra back in 2009, this arrangement was not considered a problem for the brand. In response to that, Ms. Sinatra stated that she was not informed in detail about the settlement, but instead vaguely acquainted with it. However, she failed to inform directors of Wynn Resorts about the aforementioned issue which could have prevented the situation that took the field by a storm at the beginning of 2018.
This could have potentially prevented the negative impact on the brand and the investors since the shares of Wynn Resorts witnessed a significant price drop ever since the beginning of the investigation. In addition to that, the said settlement was not disclosed to the authorities once Wynn Resorts was applying for its Massachusetts licensing.
This is also an instance that should be taken into account, as the potential disclosure of the arrangement would have been an issue for the casino license granting. Ms. Sinatra is one of the key qualifiers for the said casino resort which is currently under construction. The other individual qualifier is current CEO of Wynn Resorts, Matt Maddox.