One of the largest settlements of Section 10b-5 claims arising from #MeToo allegations
NEW YORK, NY / ACCESSWIRE / September 19, 2024 / After six years of highly contested litigation, Pomerantz LLP has achieved a $70 million settlement in a securities class action brought on behalf of Wynn Resorts shareholders. On Monday, September 16th, the Firm filed a motion asking the United States District Court for the District of Nevada to grant preliminary approval to the settlement. The case is Ferris, et al. v. Wynn Resorts Ltd., et al., No. 2:18-cv-00479 (D. Nev.).
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Wynn Resorts is a leading owner and operator of casino resorts in Las Vegas, Boston, and Macau. The case centers on allegedly misleading statements made between March 28, 2016 and February 12, 2018 by Wynn Resorts, the company's founder and former CEO Stephen Wynn ("Wynn"), and certain of the company's executives surrounding an alleged decades-long pattern of sexual misconduct and harassment by Wynn. The complaint alleged defendants were aware of numerous allegations of sexual misconduct made against Wynn over the course of several decades and defendants repeatedly denied those allegations and helped to cover them up. In January 2018, an article in the Wall Street Journal reported on the alleged years-long pattern of misconduct by Wynn, eventually leading Wynn to resign as CEO and prompting both the Nevada Gaming Control Board and the Massachusetts Gaming Commission to open investigations into the company's handling of the allegations. These events led to a drop in Wynn Resorts' share price, which caused significant damage to the company's shareholders.
The proposed settlement in the case comes after six years of hard-fought litigation, which included plaintiffs overcoming defendants' motion to dismiss, obtaining class certification, and prevailing on motions related to the documents that plaintiffs were entitled to during discovery.
"This case should serve as a warning to corporations and their officers that talk is not, in fact, cheap," says Partner Murielle Steven Walsh, who leads the securities class action lawsuit. "Investors care about corporate integrity and accountability, and companies that are accused of making statements to cover up or deny allegations of serious misconduct by executives face a potentially steep financial reckoning."
According to Pomerantz's Managing Partner Jeremy A. Lieberman, "The Wynn case adds to our firm's solid history of making new law and achieving outstanding results on behalf of investors, against considerable odds. In this particular case, we have proven that securities laws can successfully be applied to matters of great importance to investors, such as sexual harassment and ensuring a safe work environment for employees."
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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CONTACT:
Carolyn S. Moskowitz
Pomerantz LLP
[email protected]
(212) 661-1100
SOURCE: Pomerantz LLP