Wynn Resorts lawsuit delayed by founder Steve Wynn for allegedly violating attorney-client privilege

  • Steve Wynn argues Wynn Resorts violated his attorney-client privilege when it cooperated with the Massachusetts Gaming Commission's investigation into sexual harassment complaints outlined first by the Wall Street Journal.
  • MGC is also reviewing the way company executives and the board of directors handled those complaints.
  • Wynn Resorts has completed its own internal investigation and handed over its report to the Gaming Commission.
The exterior of The Wynn and Encore Hotels & Casinos are viewed on March 2, 2018 in Las Vegas, Nevada.
George Rose | Getty Images
The exterior of The Wynn and Encore Hotels & Casinos are viewed on March 2, 2018 in Las Vegas, Nevada.

Wynn Resorts has pinned big expectations to its newest property outside Boston. The casino operator sees the June opening as crucial — but its gaming license is under review amid allegations against Steve Wynn. That review is being delayed by a lawsuit the former CEO filed against the company he started.

Steve Wynn argues that Wynn Resorts violated his attorney-client privilege when it cooperated with the Massachusetts Gaming Commission's (MGC's) investigation into sexual harassment complaints first outlined by the Wall Street Journal.

MGC is also looking into the way company executives and the board of directors handled those complaints. Wynn Resorts has completed its own internal investigation and handed over its report to the Gaming Commission.

Steve Wynn is also suing the Commission and the lead investigator to keep secret what he considers privileged information.

In a statement to CNBC, Wynn Resorts said it "firmly believe(s) that the company did nothing wrong in cooperating with the MGC's investigation and that the documents and information in question do not violate Mr. Wynn's attorney-client privileges. The company will continue to defend itself in this matter."

A Nevada judge ruled Friday to limit what Massachusetts gets and uses in its investigative report. She ordered lawyers to complete depositions and motions in the case by Jan. 25.

Though construction continues on schedule for the Encore Boston Harbor — the gaming license remains in limbo. The Commission says it cannot rule until the litigation is settled in Nevada.