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EML Payments subsidiary to face class action
Thousands of Australian investors have filed a class action in the Supreme Court of Victoria against a subsidiary of listed payment solutions company EML Payments Limited for alleged misleading representations pertaining to corporate governance and regulatory compliance.
Jerome Doraisamy
PFS Card Services Ireland Limited (PFS) – a subsidiary of EML Payments Limited (ASX: EML) – was flagged for “significant regulatory concerns” six months ago by the Central Bank of Ireland with regard to its compliance with anti-money laundering and counter-terrorism rules.
“The Central Bank of Ireland raised the alarm over potential non-compliance with anti-money-laundering and counter-terrorism financing regulations with PFS on May 13,” said Shine class actions practice leader Joshua Aylward (pictured).
“This suggested the company’s European operations could be in jeopardy, but EML failed to disclose this to the Australian share market in a timely manner.”
A global payments company that specialises in prepaid gift and sports-betting cards, Mr Aylward went on, should have strict controls and reporting structures in place to protect shareholders.
“It is alleged that EML’s conduct showed disregard for its regulatory obligations and to the thousands of Aussies who invested their money into its businesses,” he said.
Mr Aylward noted that investors who purchased shares in EML between 19 December 2020 and 18 May 2021 are eligible to register their interest in the class action.
Jerome Doraisamy
Jerome Doraisamy is the editor of Lawyers Weekly and HR Leader. He has worked at Momentum Media as a journalist on Lawyers Weekly since February 2018, and has served as editor since March 2022. In June 2024, he also assumed the editorship of HR Leader. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of the Minds Count Foundation.
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