The Star Entertainment Group is facing yet another legal battle as it has been served a statement of claim for a securities class action in the Supreme Court of Victoria.
The lawsuit was filed by Australian law firm Maurice Blackburn Lawyers on behalf of shareholders of the Star Entertainment Group (Star Casino). According to the firm, the class action alleges that Star breached disclosure obligations and acted against the best interests of the shareholders.
The proceeding alleges that in the period from 29 March 2016 to 16 March 2022, Star had inadequate systems and processes for ensuring compliance with its obligations under anti-money laundering (AML) and counter-terrorism financing laws (CTF), and had inadequate systems and processes for ensuring compliance with Australian regulatory obligations.
According to the filings, shareholders paid more for their shares than they would have had they understood how the business was being run. Other shareholders are claiming that they would not have purchased shares had they known that the company was non-compliant with local regulations.
In a statement on Monday, Star Entertainment stated that it ‘intends to defend the proceedings’.
Last month Star was fined AU$100 million (€64 million) for license breaches that included allowing money laundering to take place at its Sydney casino.
Based in London, Natasha is a former sports journalist with experience working for some of the biggest athletes & brands in the world of sports and iGaming.