Star Entertainment hits with another class action lawsuit

Star Entertainment Group Limited, Australia’s leading gaming operator, announced it is facing another class action lawsuit alleging deficiencies related to anti-money laundering (AML) and terrorism financing.

Maurice Blackburn files lawsuit against The Star

On Monday, the company released a statement saying it had been served with a securities class action complaint in the Victorian Supreme Court by Maurice Blackburn, the leading law firm. The new class action lawsuit alleges that between March 29, 2016 and March 16, 2022, the operator made misleading representations of its systems and processes related to AML and terrorism financing.

In addition, the lawsuit alleges that The Star Entertainment failed to disclose important information related to these control methods and conducted business against the interests of its members. With that in mind, the company acknowledged that the latest lawsuit was “substantially similar” to another securities class action lawsuit.

The lawsuit alleges that, between March 29, 2016 and March 16, 2022, The Star made misleading statements, including about its systems and processes to comply with anti-money laundering and counter-terrorism financing obligations, that it failed to do so had brought to market relevant information about these matters and conducted its business contrary to the interests of members of The Star as a whole,

according to a statement from The Star Entertainment

According to The Star Entertainment, the latest class action lawsuit is similar to the lawsuit filed by Slater and Gordon in March of this year. The company announced that it would oppose the procedure.

The latest announcement marks the second class action lawsuit The Star has faced. The first such lawsuit filed by Slater and Gordon read, “There may be reasonable basis for alleging that Star has failed to comply with its ongoing disclosure requirements and that it has made misleading or deceptive statements to the ASX.”

Amid the investigation into alleged violations of anti-money laundering and anti-terrorism regulations, the company’s shares began to fall. Consequently, The Star’s investors filed the lawsuits after seeing their investments plummet. As details emerged about suspected money laundering and possible links to organized crime, The Star’s stock lost nearly A$1 billion ($750 million) in value. Although the company’s shares tried to climb slightly higher, they are still lower compared to the time before the allegations broke.

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