Investor sues former SkyCity executives over US$44m AML penalty
A shareholder is suing eight former SkyCity leaders, including two ex-CEOs.
Australia.- Eight former senior executives and board members at SkyCity Entertainment, including former CEOs Graeme Stephens and Michael Ahearne, are facing legal action over anti-money laundering (AML) compliance failures.
The lawsuit was filed in the New South Wales Supreme Court by SkyCity shareholder Stephen Wright. The claim, structured as a statutory derivative action, aims to recover financial damages incurred due to the AU$67m (US$44m) fine imposed by AUSTRAC, Australia’s financial crimes watchdog, for oversight and regulatory failures at SkyCity’s Adelaide operations between 2016 and 2022.
According Australian Financial Review, Wright alleges the defendants breached their duties of care, diligence, and good faith during their tenure, contributing to the compliance lapses identified by AUSTRAC. Enforcement actions were also taken against Crown Resorts and Star Entertainment.
