Crown Resorts faces a new shareholder class action alleging investors were misled and harmed by the casino giant’s dysfunctional governance which led to possible breaches of anti-money laundering laws.
Shares in the James Packer-backed group fell 8 per cent on October 19, wiping $500 million off Crown’s market value, when it revealed the financial crimes watchdog AUSTRAC had launched an enforcement investigation into potential breaches of anti-money laundering laws at its Melbourne casino.
Law firm Maurice Blackburn lodged a claim in the Victorian Supreme Court on Friday accusing Crown of engaging in misleading or deceptive conduct from December 2014 through to October this year by telling investors it had “robust” or effective controls in place to ensure compliance with anti-money laundering (AML) laws.
The firm also alleges Crown acted contrary to its shareholders’ interests and – in a novel legal approach – will ask the court to consider ordering Crown to buy back shares from affected investors.
The original full article can be found at smh.com.au