The Star Entertainment Group’s week has gone from bad to worse as it now faces two potential class-action lawsuits from firms Slater and Gordon and Maurice Blackburn.
Following reports by Nine Group’s Sydney Morning Herald, the Age and 60 Minutes, the Australian casino company was confronted with revelations regarding alleged failures to counter money laundering and other illicit financing operations.
Between 2014 and 2021, the media outlets claim Star catered to high-roller gamblers with associations to criminal or foreign-influence outfits, as well as reportedly disguising gambling activity as hotel expenses.
Both law firms have since begun preparations for class-action lawsuits against the Australian casino company on behalf of its investors, with both opening preliminary investigations into the merits of such action.
“On the basis of Slater and Gordon’s investigations to date, we consider there may be a proper basis to allege that Star has been in breach of its continuous disclosure obligations, and further that it has made misleading or deceptive statements to the ASX,” stated Slater and Gordon.
Maurice Blackburn likewise issued a statement, in which it broke down the contents of its prospective class-action lawsuit, saying: “The proposed class action will allege that Star engaged in misleading and deceptive conduct; breached its continuous disclosure obligations; and conducted its affairs contrary to the interests of members as a whole in the period.”
Both companies are calling for anyone who was issued shares in the alleged time period to come forward.
This news comes hot on the heels of an announcement by New South Wales’ Independent Liquor & Gaming Authority (ILGA) in which the regulator revealed public hearings will be held as part of The Star Casino’s licence review.
Star has largely escaped the scrutiny facing its rival Crown Resorts, but these recent developments look set to plunge it into a similar regulatory quagmire.
Source : /www.gamblinginsider.com
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