Steve Wynn Steps Down As Chairman And CEO, Says 'Judgment Takes Precedence Over Everything Else, Including The Facts'

Steve Wynn, chairman and CEO of Wynn Resorts, Limited WYNN, said he has resigned from the gaming company he founded.

What You Need To Know

Wynn came under fire after a Wall Street Journal report detailed allegations of sexual misconduct that spanned decades. The report said dozens of former and current employees allege sexual misconduct by Wynn, including one case of a $7.5 million financial settlement to a manicurist who alleged she was pressured into having sex with the billionaire casino mogul.

Why It's Important

Shares of Wynn Resorts gained more than 10 percent early Wednesday morning. Investors are likely assuming Wynn's resignation from the company which bears his name indicates the first step to rectify any wrongdoings and move forward.

Wynn said in a press release he denies ever assaulting anyone. In a statement, he said, "judgment takes precedence over everything else, including the facts." Nevertheless, the executive reached the conclusion that he "cannot continue to be effective in my current roles" given the "avalanche of negative publicity."

What's Next?

Wynn's future remains uncertain and he has already resigned from the Republican National Committee where he served as finance chief.

Wynn Resort's stock as trading around the $200 when WSJ broke its Jan. 26 report. The stock closed Tuesday at $163.22 and was trading near the $180 area in Wednesday's pre-market session.

Related Links:

Reputation Expert: Wynn Must Distance Itself From CEO To Protect Gaming Licenses, Brand

JPMorgan: Despite A $2 Billion Drop In Market Cap, Wynn Resorts Is A Risky Bet Right Now

Image credit: Ken Lund, Flickr