Two More Class Actions Filed Against Star Entertainment Group
Law offices Phi Finney McDonald and Shine Lawyers have taken legal action against Star Entertainment Group with two separate shareholder class suits
The allegations claim that the company made false statements regarding their anti-money laundering and counter-terrorism financing duties. This follows previous similar lawsuits filed against The Star by Slater & Gordon in March 2022 and Maurice Blackburn in November 2022.
Angry Shareholders Join Two New Class Actions Against Star Entertainment Group
Business News Australia reported that the law firm of Phi Finney McDonald is accusing Star Entertainment of making false statements regarding their compliance with anti-money laundering and counter-terrorism financing regulations from 2016 to 2022.
They claim that the casino operator failed to reveal crucial information to the market, leading to an inflated share price and negatively affecting shareholder interests. The allegations also include accusations of violating continuous disclosure obligations and engaging in misleading and deceptive practices.
The second class action filed by Shine Lawyers is more or less similar to that by Phi Finney McDonald. The Australian Financial Review reported that Shine has accused Star Entertainment of misleading the public and violating continuous obligation laws, resulting in a decline in their stock price from March 2016 to May 2022.
In a 308-page statement of claim, the law firm alleges that the casino operator failed to inform the market about the potential risks of money laundering, links to organized crime, fraud, corruption, terrorism financing, and regulatory issues, despite being aware of these matters after a 2018 report by KPMG.
Craig Allsopp, Shine’s joint head of class actions, stated that investors suffered the consequences of Star Entertainment’s deceit. He will be leading the case with the assistance of Fiona Forsyth, Tim Chalke, and Owen Nanlohy.
Star Entertainment Group Has Struggled with Various Legal Matters for a While
Star Entertainment Group has faced numerous legal challenges as a result of investigations conducted by the gaming regulatory bodies of New South Wales and Queensland.
One of these challenges includes a legal action brought forward by AUSTRAC, claiming serious and persistent violations that left Star Entertainment vulnerable to criminal activity.
The casino operator was hit with a massive AUD 100 million ($69 million) fine and forced to halt operations for 90 days due to a stern stance taken by the Attorney-General of Queensland following the results of the Gotterson review.
Additionally, the Australian Securities and Investment Commission took action against the leadership of Star Entertainment, filing a lawsuit in December 2022 for alleged violations of their directorial responsibilities.
The legal difficulties faced by Star Entertainment Group have their roots in a review conducted by the New South Wales gaming regulatory body into the casino’s eligibility to retain its license. This review resulted in a massive AUD 100 million ($69 million) penalty and a major shake-up of the company’s leadership.
Silvia has dabbled in all sorts of writing – from content writing for social media to movie scripts. She has a Bachelor's in Screenwriting and experience in marketing and producing documentary films. With her background as a customer support agent within the gambling industry, she brings valuable insight to the Gambling News writers’ team.
