Elaine Wynn said on Wednesday that she reported a Wynn Resorts’ employee’s accusation of rape against her then-husband, Steve Wynn, to the company’s board in 2009.
Ms. Wynn was giving evidence in a Nevada courtroom as part of ongoing litigation against her now ex-spouse and the company in which she remains among the biggest shareholders.
She is suing for breach of contract after being booted off the board in 2015, she says for threatening to expose misconduct by the company’s executives. Wynn Resorts claims it was for breach of fiduciary duties.
Ms. Wynn testified that, nine years ago, she had told Wynn Resorts General Counsel Kim Sinatra about an email regarding the alleged rape, which had allegedly taken place in 2005 and possibly led to a $7.5 million hush money settlement.
‘No Longer a Concern’
According to the TIME, Ms. Wynn said Sinatra, after consulting company lawyers, told her this was “deemed not to have been an issue of concern for the company, that it had been handled personally, and therefore, it had been resolved.”
“I told Ms. Sinatra that I had received information alleging that Mr. Wynn had raped an employee of the hotel in 2005,” she testified.
Steve Wynn was forced to resign from his position as chairman and CEO of Wynn Resorts in the wake of a maelstrom of allegations of sexual harassment against former employees.
Last week he sold his majority stake in the company, but he continues to deny the allegations, claiming they are part of a smear campaign orchestrated by his ex-wife.
The Las Vegas Review-Journal reports Todd Brice and Don Campbell, representing Steve Wynn and Wynn Resorts, argued that Ms. Wynn had never used the world “rape” in previous testimony and accused her of sensationalizing the proceedings for the benefit of the media.
“She knows exactly what she is doing. She wants to pollute the jury pool,” Bice claimed. “She wants to talk about something other than her breach of contract lawsuit.”
But Dan Polsberg, a lawyer for Elaine Wynn, said the word “rape” had been used previously and offered to “reopen the evidence.”
Elaine ‘Promised to Destroy Steve Wynn’
Brice and Campbell also argued that Wynn’s conversation with Sinatra did not fulfil official reporting requirements, adding that she had apparently not told anyone else about the alleged attack until it was mentioned in sealed documents filed to the court in 2015.
By contrast, the Wynn Resorts attorneys noted, she had written persistently to the board to complain about her ex-husband’s 2011 marriage ceremony to Andrea Hissom taking place on company property.
Meanwhile, Sinatra issued an official statement after the hearing, denying Wynn’s claim.
“My recollection, which is clear, is that at no time did Elaine Wynn ever tell me that there was an allegation of rape against Steve Wynn,” she said.
“In the relevant conversation in which she promised to destroy Steve Wynn and said she didn’t care if that reduced the company’s stock price to zero in the process, Elaine Wynn made an oblique reference to a settlement, and nothing more,” Sinatra added.
The trial continues.