Shares of gaming giant Wynn Resorts, Limited (NASDAQ:WYNN) plunged as much as 11.2% in trading Friday after The Wall Street Journal reported that dozens of people have been sexually harassed by CEO Steve Wynn. At 3:20 p.m. EST, shares were still down 9.9% on the day.
The allegations of sexual harassment and assault are graphic and widespread in The Wall Street Journal's reporting, which Steve Wynn says are "preposterous." But given the history of allegations with multiple sources eventually leading to the ouster of powerful men, there's a large risk that Wynn will be the next to fall.
Steve Wynn himself is the force behind Wynn Resorts, and his vision for the company is closely linked to its success. His loss would be worth billions for the company and may lead to a tremendous amount of lost business because of his hands-on involvement with clients and regions where the company operates.
While it's not good to read too much into these allegations from an investment standpoint, they are serious and could lead to turnover at the very top of the company. While Wynn Resorts has a great leadership team and extremely valuable resorts in Las Vegas and Macau, Steve Wynn is the visionary behind the company's direction. If sexual harassment allegations lead to his ousting, it could definitely be a big blow to the stock long term.