Wynn Resorts settled a claim against its founder for $7.5M — and the silence cost far more

Steve Wynn, the founder and CEO of Wynn Resorts, built one of the world's most successful casino and hotel companies. But in January 2018, the Wall Street Journal published an investigation revealing a pattern of harassment and misconduct by Wynn spanning decades.

The investigation revealed that Wynn Resorts had paid $7.5 million to settle a harassment claim from a manicurist in 2012, and that the company's board had been aware of the allegations. The board's response — paying the settlement and keeping it quiet — was later criticized as enabling the behavior.

Wynn resigned as CEO and chairman in February 2018. The company's stock fell approximately 25%. Wynn later sold his remaining shares and was barred from the gaming industry. The case illustrated how a board's decision to pay for silence can be more damaging than the underlying misconduct, and how the 'settle and conceal' approach creates a liability that compounds over time.