Yelp Inc (YELP) Speaks Out Against Steve Wynn For Supporting SLAPP Lawsuits

Yelp Inc (NYSE:YELP) is up in arms against a law that could put its core review business at risk. The company has accused casino investor Steve Wynn, who is associated with Wynn Resorts, Limited (NASDAQ:WYNN) of trying to undo the privileges of freedom of speech enshrined in the First Amendment rights. The reason Wynn is attracting the wrath of Yelp is that he is supporting a piece of legislation that would allow businesses to take people who defame them through online reviews to court.

The laws that Wynn is supporting is known as strategic lawsuits against public participation (SLAPP). Many states have adopted anti-SLAPP laws that make it harder for businesses to sue people who post critical reviews about them on the Internet. However, Wynn wants Nevada to tweak its anti-SLAPP law because, according to his lawyer, the law is too broad.

The other reason that seems to make Wynn back reforms to anti-SLAPP is that review platforms like Yelp Inc (NYSE:YELP) have allowed users vast space to post lies that sometimes lead to irreparable damage to companies.

A bitter man

However, Yelp Inc (NYSE:YELP) cited in a post that Wynn is simply a bitter man who has lost a series of cases because of anti-SLAPP laws. In California, for instance, Wynn failed to nail a hedge fund manager who criticized his company and that blow came on the back of robust anti-SLAPP laws in California.

It seems to Yelp Inc (NYSE:YELP) that Wynn wants to dismantle Nevada’s ant-SLAPP law so that he can have leeway suing people who criticize him.

Unconstitutional move

Whatever Wynn may be up to with his support for SLAPP law, Yelp maintains that the move is against the Constitution and Wynn should abandon the cause. As Wynn’s lawyer says that Yelp is doing too little to tame defamation on its platform, Yelp holds that its reviews are protected by First Amendment rights.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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