Crown faces shareholder lawsuit

crown

Shareholders believe that they should sue the company because they lost US$1 billion in a very short period of time.

Some of the company’s shareholders would join a lawsuit over the China arrests.

Australia.- The Australian casino operator Crown Resorts could face a lawsuit from its shareholders over the fact that they faced a significant share slide in the past few months. They believe that its related to the detention of 18 Crown employees in China.

The shares of the company dropped almost 14 percent after the news of the arrest were public, and shareholders believe that they should sue the company because they lost US$1 billion in a very short period of time. Julian Schimmel of Maurice Blackburn said: “We have reason to believe that: one, Crown knew the risks of its activities in China; two, it knew of the importance of VIP revenue to its business; and three, it therefore knew or should have known that if were revealed, there would be a revenue problem that would be material to Crown’s share price.”

Maurice Blackburn believes that the company knew that its operations in China were dangerous and that they should’ve informed the shareholders the risks that they were taking. The Ministry of Public Affairs of China recently informed that foreign casinos looking for Chinese customers are among the highest threats to the nation.