Steve Wynn sees his reputation along with his net value go up in smoke ever since the sexual assault allegations against him were published in the Wall Street Journal last Friday.
Fallout from the scandal continued on Monday with the shares of his company Wynn Resorts dropping a further 9%. In the US alone, Wynn Resorts has now lost some $3.5bn since the misconduct allegations against its founder were published, leaving a remaining value of $17bn.
Mr Wynn’s personal stake, valued at $2bn has fallen by $400million since last Friday.
But this is not where the story ends. Mr Wynn was also informed that the Chinese regulators (on top of those in Massachussets that have already launched an investigation) had voiced concern over the sexual harassment allegations, and Wynn Macau Ltd. is now also facing regulatory inspection. The company stated it would cooperate.
The fallen mogul’s lawyers meanwhile have started pleading before a Las Vegas court that Mr Wynn’s ex-wife Elaine, who he divorced in 2001, is behind the allegations.
In a released statement, they claim that “sufficient evidence exists to show that Elaine Wynn, personally and/or through her agents, instigated and facilitated the Wall Street Journal article. Elaine Wynn has threatened to ‘destroy’ Mr. Wynn and in that quest ‘did not care if the stock went to zero.’ We believe that the Wall Street Journal article was in furtherance of that effort.”
We remind you that the Wall Street Journal accused her ex-husband of pressuring employees for sex and reported that he paid $7.5 million to settle allegations from an employee. Mr Wynn denies the charges but has stepped down from the GOP already over the weekend.