Elaine Wynn, the former wife of casino mogul Steve Wynn, has reportedly been handed a setback in her fight to get out of an agreement that prevents her from selling her $1 billion stake in Wynn Resorts Limited without his permission.
According to a report from the Bloomberg news service, a January 23 hearing saw Judge Elizabeth Gonzalez from the United States District Court For The District Of Nevada issue an order that temporarily blocked Elaine Wynn’s legal team from Los Angeles-based firm Quinn Emanuel Urquhart And Sullivan from participating in the ongoing action while she considers whether to disqualify the attorneys altogether.
Wynn Resorts Limited, which operates casinos in Macau and the United States including the Wynn Macau and the Wynn Las Vegas, had reportedly alleged that Quinn Emanuel Urquhart And Sullivan lawyers had obtained proprietary information about its business via a computer download by Elaine Wynn. In her order, Gonzalez additionally ruled that the law firm can not utilize any confidential records it may have obtained in “any way, shape or form” although it is purportedly permitted to contest the January disqualification.
“I’ve had multiple stories every time I’ve dealt with this information,” Gonzalez reportedly told the Nevada hearing. “The fact that the story changes whenever some new information comes up gives me a high level of concern, which is why I am trying to preclude [Quinn Emanuel Urquhart And Sullivan] from affirmatively reaching out to anyone.”
Bloomberg additionally reported that the ruling came almost a year after Elaine Wynn, who had failed to keep her seat on the company’s board in 2015, brought in the Quinn Emanuel Urquhart And Sullivan team in an effort to escalate the three-way legal brawl involving herself, 75-year-old Steve Wynn and his former business partner, Japanese billionaire Kazuo Okada.
The news service reported that Elaine Wynn’s legal team alleged in 2016 that the 74-year-old had been ousted from the Wynn Resorts Limited board in retaliation for challenging her ex-husband’s management style. Among the purported contentions made by the unit from Quinn Emanuel Urquhart And Sullivan were that Steve Wynn had been forced into a multi-million-dollar settlement with a former employee over allegations of “serious misconduct” on company property.
Bloomberg moreover reported that last year saw Elaine Wynn claim that she was entitled to whistle-blower protections for disclosing possible securities law violations to Wynn Resorts Limited’s external auditors.
The Wynn-on-Wynn fight reportedly began some five years ago after Las Vegas-based Wynn Resorts Limited forcibly redeemed Okada’s 20% stake amid allegations that he had bribed gaming officials in the Philippines while building his Okada Manila casino resort. Elaine Wynn then filed a separate claim in the lawsuit against Okada asking to be allowed to escape a shareholders agreement that had been part of the couple’s 2010 divorce settlement and that prevents her from selling her shares without her ex-husband’s permission.