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- The Star Entertainment Group (SGR) is facing a class action lawsuit from its shareholders after a recent plunge in the company’s share price
- The casino operator’s share price dropped over 20 per cent after allegations emerged the company had mismanaged money laundering and counter-terrorism financing (CTF) risks
- SGR denies it failed to act on a KPMG report on its anti-money laundering (AML) and CTF requirements, but it’s share price still plummeted from $4.28 per share to $3.30 each
- Maurice Blackburn Lawyers today launched a lawsuit due to the allegations and associated share price drop, which it argues wiped off $1 billion in value
- Despite the lawsuit, shares in Star are trading up 0.54 per cent at $3.71 per share at 1:38 pm AEDT
The Star Entertainment Group (SGR) is facing a class action lawsuit from its shareholders after a recent plunge in the company’s share price.
The casino operator’s share price dropped over 20 per cent after allegations emerged the company had mismanaged money laundering and counter-terrorism financing (CTF) risks.
The company denied the claims last Monday and pushed back on claims it ignored reports prepared by KPMG in 2018 on the anti-money laundering (AML) and CTF issues.
Despite the denial, SGR’s share price went into freefall with close to $1 wiped off its price when shares dropped from $4.28 per share to $3.30 each.
Maurice Blackburn Lawyers have today launched a lawsuit due to the allegations and associated share price drop, which it argues wiped off $1 billion in value in SGR.
The law firm also alleges Star’s AML/CTF risks may be higher than previously disclosed and raised concerns over its junket tours of “high-roller” customers.
Maurice Blackburn Principal Vavaa Mawuli said shareholders believed they had been misled by the operator, which has casinos in Sydney and the Gold Coast.
“Shareholders rightfully expect casino operators to rigorously comply with anti-money laundering and counter-terrorism financing laws because casinos are unmistakably targets for criminal activity,” Ms Mawuli said.
“Shareholders had a right to expect open and transparent information from Star. Instead they got a crooked crap game.
“The fact that these concerns were raised in 2018 and not disclosed to the market raises real concerns about Star’s governance and shareholders should be rightfully concerned.
“Anti-money laundering laws are designed to promote public confidence in the Australian financial system.
Investors are entitled to expect gaming companies to engage in best practice. That doesn’t appear to have occurred at Star.”
Despite today’s lawsuit announcement, shares in Star are trading up 0.54 per cent at $3.71 per share at 1:38 pm AEDT.
