Business

Wynn threatens Boston mayor with defamation lawsuit

The planned Wynn Resorts casino in Massachusetts. AP

By Adam Vaccaro

July 6, 2015

2 minutes to read

Boston Mayor Marty Walsh and Wynn Resorts—which plans to build a casino just across Boston’s boundary with Everett—have spent the better part of the last year fighting. The latest skirmish came Monday when a Wynn attorney threatened to sue the city for defamation.

The simmering rivalry is most clearly seen in the city’s own lawsuit filed against the Massachusetts Gaming Commission, challenging the commission’s decision to give Wynn a license to build the $1.7 billion resort casino. Boston first sued in January and then added to the suit in May. The city issued an array of subpoenas in June.

On Monday in a letter to Walsh and city lawyers, attorney Barry Langberg demanded an apology, and called the city’s claims connected to the suit “false’’ and “extremely damaging to Wynn.’’

The city claims Wynn investigators obtained improper access to state files related to a convicted felon’s stake in the Everett land Wynn eventually bought. The city also claims Wynn employees met to discuss the felon’s ownership stake. The felon, Charles Lightbody, has been at the heart of controversy over the Everett project.

Langberg cited the two city claims in his letter as “vicious falsehoods’’ and “defamatory.’’ He said the investigators were not employed by Wynn and the company “has no knowledge of anyone obtaining improper access to police files.’’ He also denied the company’s employees knew of Lightbody’s ownership stake.

Langberg said Wynn could take legal action of its own.

“Apparently, you have conducted yourselves with reckless disregard for the truth because you somehow feel your actions are immune from accountability,’’ he wrote. “Such is not the case. Massachusetts law does not protect individuals (even public officials) from defamation liability for providing falsehoods to the media, even when they attempt to insulate themselves by disseminating the falsehoods in the form of legal documents.’’

In response, Walsh spokesperson Laura Oggeri said in a statement: “We dispute the assertions in the letter and we firmly stand behind the allegations in the amended complaint.’’

The city and Wynn met in June at Wynn’s request, but it doesn’t seem like there’s been much progress in reaching an accord.

The feud’s roots lie in the city’s argument that it should be considered a host city for the Wynn casino, which was denied by the gaming commission last year. That distinction would have given Boston more leverage in negotiating mitigation money from Wynn. Talks between the city and Wynn over payments for the casino’s effect on the nearby Boston neighborhood of Charlestown then broke down last summer.

Wynn was named the winner of the lone Eastern Massachusetts casino license in September, and formally received the license in November. The city’s initial lawsuit against the gaming commission challenging the license followed two months later, in January. A motion to dismiss that lawsuit will be heard this Thursday.