In Sexual Misconduct Merry-Go-Round, O'Melveny Loses One Role, Adds Another
The Am Law 100 firm has parted ways with Wynn Resorts Ltd., a week after being hired to advise its board on an investigation of its namesake, while fashion designer Guess Inc. has hired O'Melveny & Myers to conduct a probe involving sexual harassment allegations by model Kate Upton against its co-founder Paul Marciano.
February 13, 2018 at 03:29 PM
3 minute read
Following Stephen Wynn's resignation last week as CEO of Wynn Resorts Ltd., O'Melveny & Myers is out as special counsel to the gaming giant's board of directors, which had been poised to conduct a sexual misconduct investigation of its namesake.
Nonetheless, O'Melveny & Myers has been selected to conduct another probe into recent allegations of improper conduct by Paul Marciano, who in 1981 co-founded the Los Angeles-based clothing brand and retailer Guess Inc.
Supermodel Kate Upton, the high-profile niece of Michigan Rep. Fred Upton, earlier this month accused Marciano of sexual misconduct, citing multiple instances of unwanted touching and harassment by the acclaimed fashion designer.
On Feb. 8, following Upton's accusations, as well as similar claims by model and former Playboy Playmate Kristina Shannon, the board of directors at Guess launched a special committee to investigate Marciano's alleged misbehavior.
In a statement, the company said that O'Melveny & Myers will conduct an investigation into the allegations of impropriety, while the Guess board has retained Los Angeles-based firm Glaser Weil Fink Howard Avchen & Shapiro to advise its special committee. Jason Miller, a former associate at Latham & Watkins, serves as general counsel for Guess.
Meanwhile, the board of Wynn Resorts, which announced on Feb. 2 its hire of O'Melveny & Myers to assist a special committee of independent directors, has terminated the firm's contract after the resignation of Wynn as chair and CEO of the Las Vegas-based company.
Apalla Chopra, chair of O'Melveny & Myers' labor and employment practice, and partner Daniel Bookin had been tasked with looking into allegations of decades of sexual misconduct by Wynn against dozens of people, including Wynn Resorts employees, in claims first reported on in January by The Wall Street Journal. Wynn has denied the allegations.
On Feb. 12, Wynn Resorts announced that it had hired Gibson, Dunn & Crutcher to serve as outside counsel and conduct “an expanded and comprehensive review” of the company's internal policies and procedures to ensure that it maintains “a safe and respectful workplace for all employees.”
Gibson Dunn has close ties to Wynn Resorts. Kim Sinatra, a former partner in Gibson Dunn's New York office, now serves as general counsel for Wynn Resorts, a role that last year made her one of the highest-paid executives in Sin City, according to Vegas Inc. Gibson Dunn has also been representing the board of Wynn Resorts in the company's ongoing litigation with former board members Kazuo Okada and Elaine Wynn, the ex-wife of Steve Wynn.
Wynn Resorts has also turned to Gibson Dunn to advise the casino and resort operator on matters before the U.S. Securities and Exchange Commission and the U.S. Department of Justice.
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