Crown shareholders file another complaint against the company
Crown Resorts is facing another class action relating to allegations of misconduct and money laundering. This time, a law firm Maurice Blackburn filed a complaint that between 11 December 2014 and 18 October 2020 the company undermined shareholder interests and didn’t have sufficient safety measures in place to protect against money laundering, despite promising “robust” controls.
According to The Australian, Crown recently admitted the money laundering was “more probable than not.” Due to the ongoing inquiry and the admittance, the shares of the company fell by 8% on October 19, and the investors are seeking compensation. The lawsuit asks the court to order Crown to buy back its shares from the investors.
Miranda Nagy, the lawyer in charge of the case, stated the investors expected best practice from the company that claimed to take its obligations seriously, reported The Sydney Morning Herald. She said: “It appears Crown’s systems left the company potentially exposed to criminal activity happening on its premises and through its bank accounts. We believe these governance failures have caused real loss to shareholders.”
This is not the first lawsuit filed against Crown. In 2017, the firm pursued action after 19 Crown employees were arrested for promoting gambling in China where it’s illegal. The shareholders reportedly lost AUD1.3bn ($981.24m). The case is set to go to trial in 2022.
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