Elaine Wynn Files Counterclaim in Ongoing Wynn Resorts Battle

Wynn Resorts Ltd. co-founder Elaine Wynn filed a complaint Monday that attempts to regain control of her share of the company and further escalates the bitter battle between her and her former husband, Steve Wynn.

In the counterclaim filed in Nevada state court, Ms. Wynn accused Mr. Wynn of undermining her interests by misusing a years-old shareholders agreement and exposing the company to legal challenges through "reckless risk-taking."

Mr. Wynn and Wynn Resorts, in separate statements, refuted Ms. Wynn's allegations, calling them lies and distortions.

Specifically, Ms. Wynn accused her ex-husband of violating a 2010 agreement, which placed voting and selling restrictions on Ms. Wynn's shares, by orchestrating her ouster from the company's board last year as "punishment for asking too many questions" about the company's governance.

Ms. Wynn previously has asked the court to declare the 2010 invalid and award an unspecified amount in damages.

The legal wrangle, with multiple counterclaims filed, stems from a complaint filed in 2012, after Wynn Resorts forcibly bought out co-founder Kazuo Okada's stake in the company, at a roughly 30% discount to the market price, in exchange for a promise to pay him $1.9 billion in 10 years.

A jury trial on the 2012 matter is currently scheduled to begin February 2017.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

March 28, 2016 17:35 ET (21:35 GMT)

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