- Why are shareholders participating in Crown Resorts class-action lawsuit?
The Crown Resorts Ltd. saga surrounding the Crown Sydney casino property opening continues with a class-action lawsuit brought on by a group of dissatisfied shareholders, and filed by the Maurice Blackburn Lawyers.
The lawsuit comes after the casino opening was delayed due to an order from the New South Wales Independent Liquor and Gaming Authority, who are waiting on the final inquiry findings from the New South Wales Supreme Court Judge Patricia Bergin, who will determine whether or not the casino meets license suitability requirements. The Sydney casino was slated to open the week of December 14, 2020.
What does Crown Resorts Shareholder Lawsuit Say?
The suit was filed Friday, December 11, in the Victorian Supreme Court, and claims the plaintiffs’ associated holdings have been severely reduced due to mismanagement by the company’s senior team.
“It’s been very disappointing to learn how badly Crown has behaved,” says lead plaintiff Greg Lieberman in a statement from the law firm.
Additionally, the suit claims shareholders were adversely impacted and deceived starting in December, 2014, specifically detailing the promise the group made to adhere to a robust set of anti-money laundering protocols — Crown Resorts stands being accused of using junket operators in foreign markets, one of the issues being looked at in the New South Wales inquiry.
The Crown Resorts class action lawsuit looks to recover compensation, a potential share buy-back (at a fair value), and looks for the Crown to put an anti-money laundering training program in place. In October, Crown’s ASX announced AUSTRAC began investigating the company for issues related to customer due diligence, and implementing, maintaining & complying with an anti-money laundering & counter terrorism financing program. After this announcement, share price dropped over 8%, causing a negative response in the market.
This isn’t the first lawsuit lobbed at Crown Resorts by shareholders — they faced a lawsuit in 2017 after employees were arrested in China (an issue brought up during this year’s inquiry), and market value fell by nearly $985 million. Investors have still reportedly not received compensation for this particular suit.