Nevada Supreme Court tosses Wynn lawsuit against Associated Press

The Nevada Supreme Court in Carson City
Nevada Supreme Court Photo credit Jim_Pintar/Getty Images

(AP) - The Nevada Supreme Court on Thursday ended a defamation lawsuit brought by casino mogul Steve Wynn against The Associated Press in 2018, rejecting his bid for a jury to hear his claim that he was defamed by an AP story about two women who alleged Wynn committed sexual misconduct.

The seven-member court upheld a February ruling by a three-judge panel that cited the state’s anti-SLAPP law, or “strategic lawsuits against public participation, that blocks lawsuits filed to intimidate or silence critics.

That ruling said anti-SLAPP statutes “were designed to limit precisely the type of claim at issue here, which involves a news organization publishing an article in a good faith effort to inform their readers regarding an issue of clear public interest.”

In what the unanimous full court said was an effort to clarify the law, Justice Ron Parraguirre wrote that Wynn, as a public figure, needed to show “clear and convincing evidence to reasonably infer that the publication was made with actual malice.”

“The public had an interest in understanding the history of misconduct alleged to have been committed by one of the most recognized figures in Nevada,” the opinion said, “and the article directly relates to that interest.”

Attorneys who represent Wynn personally and those who handled the case did not respond to email and telephone messages seeking comment.

“The Associated Press is very pleased with the Nevada Supreme Court’s decision,” Lauren Easton, AP vice president of corporate communications, said in a statement.

The AP plans to seek reimbursement for legal costs through a lower court.

Dominic Gentile, a veteran Nevada lawyer well-known for his work in First Amendment law, said the ruling “will make it even more difficult for a public figure to bring an action over expressive conduct.”

“In most cases, the standard is ‘a preponderance of evidence’ that a lawsuit is being brought to stifle speech,” he said. “This case has taken that and raised the bar for someone who is a public figure to not get thrown out of court.”

Gentile has been an attorney in the state since 1979 and has taught at the University of Nevada, Las Vegas Boyd School of Law. Malice, he said, means “you know it’s false or you didn’t do enough to determine that it was.”

Wynn, now 82 and living in Florida, is the billionaire developer of a luxury casino empire in the U.S. and the Chinese gambling enclave of Macao. He has consistently denied sexual misconduct allegations, which were first reported in January 2018 by the Wall Street Journal.

He resigned as CEO of Wynn Resorts Ltd. after the reports became public, divested company shares and quit the corporate board. Last year, he cut ties to the industry he helped shape in Las Vegas, agreeing with Nevada gambling regulators to pay a $10 million fine, with no admission of wrongdoing.

In a flurry of settlements in 2019, the Nevada Gaming Commission fined Wynn’s former company a record $20 million for failing to investigate claims of sexual misconduct made against him before he resigned. Massachusetts gambling regulators fined the company and a top executive $35.5 million for failing to disclose while applying for a license for a Boston-area resort that there had been sexual misconduct allegations against Wynn.

The AP typically does not publish names of people who say they are victims of sexual assault, but Kuta agreed to be named in later news reports.

Wynn attorneys argued that the article, which cited police documents, failed to fully describe elements of Kuta’s account that would have cast doubt on her allegation.

A trial court judge later ruled that Kuta defamed Wynn with her claims, which the judge termed “totally fanciful,” and awarded Wynn a nominal $1 in damages.

Featured Image Photo Credit: Jim_Pintar/Getty Images