Summary:
- At least eight executives from Wynn moved to Fontainebleau.
- Wynn says the casino hired individuals with non-compete clauses.
- Several accusations have been made in the case between the two companies.
In late February, Wynn Las Vegas accused the Fontainebleau Las Vegas of hiring employees bound by a non-compete clause.
Fontainebleau vehemently denies this, stating that the former Wynn employees joined them voluntarily, driven by dissatisfaction with their previous employer. Fontainebleau has now filed a counterclaim against Wynn, trying to counteract the original filing by the casino operator.
Fontainebleau Fights Back
The Fontainebleau filing is filled with tension, as an email exchange between Fontainebleau CEO Jeff Soffer and Wynn CEO Craig Billings is included. Brimming with strong language, the email showcases the heated exchange as each CEO tries to assert their stance.
Wynn officials say that Fontainebleau’s counterclaim contains fictitious accusations, was designed to incite social media chatter, and does not give answers to the original claim. Basically, Wynn feels the claim is just for show and doesn’t dispute their original filing against the company for employee poaching.
Wynn maintains that its competitor sought Wynn employees and hired them in breach of employment contracts. The casino operator feels that Fontainebleau lacked the ability to retain talent, so it went after its employees. The company feels Fontainebleau’s behavior was unethical, and it is leaving the outcome up to the court system.
The Counterclaim
Fontainebleau says in its counterclaim that several executives stayed for a long period of time at Wynn during the construction of the Fontainebleau casino. The Wynn was able to reap the rewards of the stay, with over seven figures in revenues.
At the same time, Wynn executives became familiar with Fontainebleau’s leadership and were intrigued by the idea of moving to the casino, as it would be a brand-new resort. Several employees considered making a transition, and as more decided to leave, Wynn reportedly resorted to coercion to try and keep them on board.
The filing includes an email allegedly filled with profanity from Billings, the CEO of Wynn, to Fontainebleau CEO Soffer. The counterclaim says that Billings demonstrated a lack of dignity and judgment in his email regarding employees moving to Fontainebleau. Billings was said to have been on vacation when the email was sent.
Now, we will see the outcome as both companies head to court with their claims. More information is unknown about how the employees made the move, but with so many employees switching locations and possible non-compete clauses in place, it will certainly be an interesting time in Las Vegas as the two battle it out.
Who will win the battle, and will the outcome be fair? It will be interesting to see how this case plays out in the court system and which brand will come out on top.
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