Accusations of sexual misconduct against Steve Wynn last week led to an immediate 10% loss in the share price of Wynn Resorts, the company Wynn founded and still heads as chairman and CEO. Shares of Wynn Macau were hit harder Monday as Morgan Stanley Asia Pacific and Union Gaming in Macau downgraded the subsidiary operating Wynn's two Macau properties delivering the bulk of company profits, while Sanford Bernstein maintained its Outperform rating after Wynn Macau reported a blowout fourth quarter. Shares have taken further beatings as regulators in Massachusetts, where Wynn is developing a resort outside Boston, and Macau investigate the allegations, along with Wynn's board of directors, risking Steve Wynn's corporate positions and gaming licenses.
Wynn told The Wall Street Journal, which reported on the allegations, that "The idea that I ever assaulted any woman is preposterous."