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Companies Are Losing Millions After #MeToo Allegations Like Kate Upton's Claim Against Guess' Paul Marciano

Companies Are Losing Millions After #MeToo Allegations Like Kate Upton's Claim Against Guess' Paul Marciano
From TIME - February 2, 2018

Hours after Kate Upton used Twitter Thursday to accuse Guess co-founder Paul Marciano of using his power to sexually and emotionally harass women, the companys shares dropped almost 18%.

Guess lost more than $250 million in market value in one day. Despite the company issuing a denial of Uptons claims, shares continued to slide on Friday.

Uptons allegations show that #metoo sexual misconduct claims can hurt companys shares big timeeven when those accused offer strenuous denials.

In the case of casino mogul Steve Wynn, the loss is in the billions.

The Wall Street Journal reported on Jan. 26 that Steve Wynn, the casino mogul and founder and CEO of Wynn Resorts, had been accused of sexual harassment and assault by several employees, including one allegation that lead to a $7.5 million settlement. In a statement to the Journal, Wynn denied the allegations.

A denial from Wynn didnt stop the damage to his company. Shares for Wynn Resorts fell by 10% on the day that the Journal published its story and another 9% on Jan. 29, shaving off about $3.5 billion of the companys value, according to Fortune. Wynn lost $412 million of his net worth.

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