Shares of Wynn Resorts fell by more than ten percent after the Wall Street Journal reported that its founder and chief executive, Steven Wynn, sexually harassed women who worked for his company.
Wynn, who is the finance chairman of the Republican National Committee, is arguably the biggest name in the casino industry. Although he has long been a personal friend of Donald Trump’s, Wynn refused to endorse him in 2016. Last year, however, Wynn oversaw fundraisers for the president’s re-election and the Republican Party.
Wynn paid $7.5 million to settle claims brought by a former manicurist who said she was pressured into having sex with the casino executive, according to the Wall Street Journal. The newspaper reports similar claims made by numerous other employees at his resorts. Wynn denies the allegations, claiming his ex-wife is behind the story.
Shares of the company, which trades on the Nasdaq, fell immediately after the news broke. Wall Street analysts said it was unclear how a company so closely associated with its founder could thrive if he were forced to step away in light of the allegations. Wynn owns about 12 percent of the company. He has starred in television commercials for his resorts and his signature adorns the facade of one of his casinos in Las Vegas.
Wynn is based in Las Vegas but generates the majority of its revenue in Macau, the Chinese gambling haven.