EML Payments (ASX:EML) - Group CEO, Tom Cregan
Group CEO, Tom Cregan
Source: EML Payments
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  • EML Payments (EML) has pledged to vigorously defend itself against a class action alleging the company waited to disclose important information to shareholders
  • Shine Lawyers filed the lawsuit against EML in the Victorian Supreme Court on Thursday regarding a 45 per cent drop in the company’s share price back in May
  • EML’s securities dropped after the business revealed it had received correspondence from the Central Bank of Ireland regarding anti-money laundering (AML) concerns
  • The class action argues EML failed to disclose this information in a timely manner, but the company denies the claim and says it complied with disclosure obligations
  • EML Payments are down 5.06 per cent at $3.10 per share

EML Payments (EML) has pledged to vigorously defend itself against a class action alleging the company waited to disclose important information to shareholders.

Shine Lawyers filed the action against EML Payments in the Victorian Supreme Court on Thursday, taking aim at a 45 per cent drop in the company’s share price back in May.

EML’s securities dropped after the business revealed its subsidiary, PFS Card Services Ireland, had received correspondence from the Central Bank of Ireland regarding anti-money laundering (AML) concerns.

Shine argues EML failed to disclose this information in a timely manner and accuses the ASX-lister of engaging in misleading and deceptive conduct and also breaching its continuous disclosure obligations regarding potential non-compliance.

The class action seeks compensation on behalf of EML shareholders, specifically those who held stock between December 2020 and May 2021.

Responding to the lawsuit, EML said it “considers that it has at all times complied with its disclosure obligations”.

The company also noted that it hadn’t been served with the proceeding at this time, and it denies any liability.

Following today’s news, shares in EML Payments were trading at $3.07 at the end of the trading day.

EML by the numbers
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