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- Crown Resorts (CWN) shareholders have launched a class action against the company in relation to the money laundering scandal
- It comes after AUSTRAC launched an investigation into the issue in October before the NSW Gaming Regulator followed suit and launched its own inquiry
- Maurice Blackburn has filed the action in the Victorian Supreme Court, alleging that Crown failed in its legal obligations
- It also accuses the company of engaging in misleading conduct and conducting its affairs in a way which was contrary to investors interests
- The class action is seeking compensation as well as a potential buy-back of investors’ shares at a fair value
- Crown has not responded officially to the lawsuit, except to acknowledge it is aware of it
- Shares in the business have rallied despite the lawsuit, up a slight 0.62 per cent at $9.77 per share
Shareholders in Crown Resorts (CWN) have launched a class action against the company in relation to the ongoing money laundering scandal.
It comes after AUSTRAC launched an investigation into James Packer’s business for potentially breaching anti-money laundering and counterterrorism financing laws.
Additionally, the NSW Gaming Regulator has ruled that Crown is unfit to hold a gaming licence in the state, stopping its casino from opening, until a full review is completed.
Lawsuit
This latest setback for Crown involves a class action filed by Maurice Blackburn in the Victorian Supreme Court.
The law firm, acting on behalf of CWN shareholders, alleges that Crown has failed in its legal obligations relating to money laundering.
Specifically, it claims that between December 2014 and October 2020, Crown had “inadequate systems and processes” in place to ensure it was complying with anti-money laundering laws.
The lawsuit also alleges that the casino and resorts business mislead investors and engaged in deceptive conduct, while also conducting its affairs in way which was “contrary to the interests of members.”
The class action is aiming to recover compensation for Crown shareholders and well as a potential buy-back of investors’ shares at a fair value.
It’s also seeking that CWN implements a proper anti-money laundering training program throughout its businesses.
Next steps
Crown hasn’t formally responded to the class action, instead the company advises that it hasn’t yet been served with an originating process in respect of this proceeding.
The company’s share price has recorded a slight uplift since the class action announcement this morning, rising 1.18 per cent to trade at $9.84 per share.
