Wynn Resorts has announced a settlement in the consolidated derivative lawsuit filed on behalf of the company, under which it will receive $41m ($20m from Steve Wynn and $21m from insurance carriers) less certain fees and costs.
Neither the company nor its current or former directors and officers were found to have committed any wrongdoing in connection with the settlement which is subject to court approval.
The settlement also credits Wynn Resorts with $49m as a result of corporate governance enhancements undertaken after the filing of the lawsuit, and further enhancements agreed to by the company pursuant to the settlement.
Additionally, the firm has agreed to amend its bylaws to require the separation of the role of the Chairman and CEO and stipulate a majority vote of the shareholders for the election or reelection of directors except in the case of a proxy fight.
The company will also adopt 10b5-1 trading plans for its directors and executives holding $15m in stock and strengthen its current commitment to diversity by publicly stating its goal of 50% diversity on its Board. Enhanced succession planning for the Board and executive officers has also been adopted.