Wynn Resorts founder Steve Wynn has informed the company that he plans to sell “all or a portion” of his shares following last week’s court ruling that a 2012 stockholder agreement between he, ex-wife Elaine and Kazuo Okada was “invalid and unenforceable.”
In a Wednesday filing to the US Securities and Exchange Commission, Wynn Resorts said it had been informed by Wynn that he “intends to sell all or a portion of the common stock controlled by him, pursuant to one or more registered public offerings, in the open market.”
Wynn currently holds 12.1 million shares worth around US$2.2 billion.
According to the filing, the former Chairman and CEO of Wynn Resorts cannot sell any more than 4,043,903 of his shares in any single quarter.
The Eighth Judicial District Court in Clark County, Nevada, last week ruled the stockholder agreement invalid after both Steve and Elaine Wynn presented a stipulation agreeing such a move in the wake of litigation against Okada being dropped earlier in the week. Wynn Resorts withdrew its claim of breach of fiduciary responsibility against Okada on Monday 11 March.
The Okada lawsuit was first filed in 2012 after the company cited the Japanese gaming mogul as an “Unsuitable Person” amid allegations he provided improper hospitality at Wynn properties to Philippine gaming officials to the tune of US$110,000 in a bid to win favor for his Okada Manila project.
The removal of Okada from the board in 2012 was the catalyst for the company to redeem over 24 million shares of Aruze USA, at the time Wynn’s main shareholder and headed by Okada himself. A settlement agreement announced earlier this month brought that matter to a close with Wynn agreeing to pay Aruze USA and its parent company Universal Entertainment almost US$2.5 billion relating to the redemption notes and accrued interest.
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