Wynn Resorts’ Lawsuit against Fontainebleau Intensifies

Despite the existing non-compete clauses, effectively restricting employees from one gambling operator to engage in employment with another, competition in the sector is fierce. Such policies affect a number of important employees and breaches may result in legal action.

A few years ago, Wynn filed a lawsuit after losing a high-ranking employee to Fontainebleau. While this lawsuit was eventually settled, the company recently reignited its efforts against Fontainebleau in a new lawsuit. The ongoing legal battle is over employees transitioning from Wynn Resorts to Fontainebleau Las Vegas, and the legal case keeps tangling further.

In the new legal claim, Wynn alleged Fontainebleau continues to poach its employees, asking them to leave the company. But the response and counterclaim filed by Fontainebleau against Wynn has taken the legal fight to a new level.

In the response, the company included screenshots with text messages exchanged by its CEO, Jeff Soffer, and Wynn’s CEO, Craig Billings. The attached correspondence uncovers the duo discussed the ongoing issue about Fontainebleau allegedly trying to attract Wynn executives. Although the correspondence did not include dates, it was clear that Billings wasn’t happy with Fontainebleau’s attempts to poach company employees.

Lawsuit Turns Real Nasty, Real Fast, Says Expert

When asked by Soffer to receive a call, Billings said that he was on vacation with his family and would call once he returned. Assuming that Billings was referring to a person from Fontainebleau who allegedly attempted to poach Wynn employees, he wrote: “Like you. But your guy is a f***ing rank amateur. He hasn’t operated a lemonade stand, much less a complex operation like you’re about to open. He’s running around ham fistedly trying to poach people under contract, which is a surefire way to turn the town against you.”

Moreover, per the screenshot, Billings wrote: “Rein him in to stop the damage he’s doing to your business.” In response, Soffer claimed that Billings’ facts were wrong, adding that Fontainebleau is not interested in any of Wynn’s employees who are “under contract.” Finally, Fontainebleau’s CEO wrote that he hopes to receive a call from Billings soon to clear this issue.

According to I. Nelson Rose, a Utah State University professor, an internationally recognized author and expert in gaming and gambling law, who was recently quoted by the Las Vegas Review-Journal, the lawsuit between the duo “has gotten real nasty real fast.” Referring to the paragraph with the included screenshots with correspondence, the expert said that he wasn’t sure he wanted to read more of the counterclaim.

Rose explained: “The inevitable result of this counterclaim by Fontainebleau will be an equally nasty response from Wynn.” He also added that he dislikes “snarky language and writing legal pleadings as press releases.”