Wynn Resorts (WYNN - Get Report) announced Wednesday that two members of its nine-seat board of directors will be departing as the Las Vegas-based company deals with the fallout from sexual assault allegations levied against former CEO Steve Wynn.
Former company director Ray Irani's resignation is effective immediately while director Alvin Shoemaker will not seek re-election after his current term expires next year, according to the company's securities filing.
Both Irani and Shoemaker were named as defendants in lawsuits brought by shareholders who say that board members are guilty of breaching their fiduciary duties by ignoring what their lawsuits say is a pattern of sexual abuse and harassment of employees by Wynn, who founded the gambling company.
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The state of Oregon joined New York's public pension fund in filing a civil suit against the company, alleging a massive breach of fiduciary duties that resulted in the loss of shareholder value.
Oregon's pension system held 8,506 shares of Wynn Resorts worth $1.3 million. Wynn Resorts share price fell 22% from its year-to-date high at one point in January after the Wall Street Journal first began reporting on the allegations against the mogul.
Wynn Resorts shares were up more than 6% Thursday.