The Wynn Resorts has reported it has settled its consolidated derivative lawsuit, in which the company will receive a total of $41m ($20 million from Steve Wynn and $21 million from insurance carriers) less certain fees and costs associated with bringing the suit.
Neither the Company nor its current or former directors and officers were found to have committed any wrongdoing in connection with the settlement. The settlement is subject to court approval.
The settlement also credits Wynn Resorts with $49 million as a result of corporate governance enhancements undertaken after the filing of the lawsuit, and further enhancements agreed to by the Company pursuant to the settlement.
Furthermore, Wynn Resorts has agreed to the following:
- Amend its bylaws to require the separation of the role of the Chairman and CEO and require a majority vote of the shareholders for the election or reelection of directors except in the case of a proxy fight.
- Adopt 10b5-1 trading plans for its directors and executives holding $15 million in stock.
- Strengthen its current commitment to diversity by publicly stating its goal of 50% diversity on its Board.
- Enhanced succession planning for the Board and executive officers.
