One of the leading gambling companies in Australia – the Star entertainment group – confirmed that he is facing another class action lawsuit for alleged breaches related to the company’s non-compliance with anti-money laundering and anti-terrorist financing rules.
The start of the week saw Star Entertainment release a statement indicating that the Australian gaming giant had been served with legal action for Securities class action in the Supreme Court of Victoria. The lawsuit was brought by Maurice Blackburn, the law firm which has been considering for some weeks the possibility of taking legal action against the gambling operator.
The new lawsuit alleges that Star Entertainment knowingly and deliberately misrepresents its systems and processes related to the financing of the fight against terrorism and the fight against money laundering during the period from March 29, 2016 to March 16, 2022. Additionally, the class action lawsuit alleges that the gaming giant failed to disclose crucial information regarding the aforementioned methods of business conduct and control contrary to the interests of its customers.
Apparently, the gambling operator has acknowledged that the latest claim is roughly similar to those included in another securities class action lawsuit that was filed by Slater and Gordon in March 2022. The company said it intends to defend itself against legal action.
New lawsuit related to alleged anti-money laundering and anti-terrorist financing breaches
The latest announcement from Star Entertainment Group marks the second class action lawsuit facing the Australian gambling and casino giant. As mentioned above, the first such lawsuit was filed earlier this year by Slater and Gordon, and claims there may be valid grounds to accuse Star Entertainment of violate its continuous disclosure obligationsand further that the company had intentionally made false statements to deceive the Australian Securities Exchange (ASX) officers.
In its statement released earlier this week, Star Entertainment Group confirmed that the allegations cover the period between March 29, 2016 and March 16, 2022. The lawsuit claims the Australian gaming company made misleading statements, including about its AML Compliance Process and Counter Terrorism Financing and its systems. Other than that, the lawsuit claims that Star Entertainment did not disclose relevant information.
Following the latest investigation into the alleged violation of anti-money laundering and counter-terrorist financing rules, Star Entertainment Group experienced a decline in its share price. With details emerging of possible alleged links to organized crime and suspicions of money laundering, the value of the gambling operator’s shares has shrunk by almost A$1 billion. Despite the fact that Star Entertainment shares tried to mark a slight increase, their value remained lower compared to the period before the allegations have been revealed.
Reportedly, some investors in the company filed lawsuits after noticing that their investment was costing them money.
Olivia Cole has been working as a journalist for several years now. Over the past two years she has written about a number of industries and developed an interest in the UK gaming market.