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Crown faces second class action from shareholders

Another class action has been brought by shareholders.
Another class action has been brought by shareholders.

A new lawsuit alleges that the Australian operator engaged in misleading behaviour over its anti-money laundering controls.

Australia.- Shareholders have lodged a new class action against the Australian gaming giant Crown Resorts Victorian Supreme Court

The suit presented by the law firm Maurice Blackburn seeks compensation for shareholders’ losses due to Crown’s non-compliance on anti-money laundering rules between December 2014 and October 2020.

Crown told shareholders it has not yet been served with the originating process. The operator is currently under investigation by the New South Wales Independent Liquor and Gaming Authority (ILGA) and the financial crimes watchdog, AUSTRAC.

The investigations stem from an incident from 2016 when 19 officials were arrested for promoting gambling in China, where it is illegal.

The investigation revealed that Crown allowed Chinese high rollers with links to organised crime to use unsupervised bank accounts. the operator also sponsored permits for them to enter Australia and gamble at local casinos.

One shareholder class action had already been launched and is expected to reach trial in 2022.

The new case claims that Crown had promised shareholders robust controls against money laundering which were not enforced. It alleges that Crown engaged in misleading and deceptive conduct, breached its continuous disclosure obligations and conducted its affairs contrary to the interests of members as a whole during the period.

Maurice Blackburn says that the class action seeks compensation from Crown including the potential buy-back of investors’ shares at a fair value decided by the court.

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australia Crown Resorts Money Laundering