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2nd class action launched against The Star
The Star Entertainment Group has been hit with a second class action, which alleges money-laundering activities and misleading conduct.
Lauren Croft
Filed by Maurice Blackburn in the Victorian Supreme Court this week, the class action alleges that The Star engaged in misleading and deceptive conduct to the detriment of members and shareholders.
According to the statement of claim, filed on Friday (4 November), The Star allegedly engaged in business practices “likely to facilitate money laundering” that were also unlikely to meet Australian regulatory requirements.
“[The] Star did not take adequate or timely steps to ensure its risk and compliance committee, audit committee, or the board was made aware of the legal or compliance risk associated with those business practices,” the statement of claim said.
“Alternatively, by the risk and compliance committee, audit committee, or the board to investigate the legal-compliance risk posed by those business practices.”
This news follows the launch of a largely similar class action, filed by Slater & Gordon in March this year, which came after widespread media reporting in October 2021, which revealed that The Star had cultivated high-roller players who were allegedly associated with criminal or foreign-influence operations and had failed to comply with its obligations under anti-money laundering and counter-terrorism financing laws.
In response to those media reports, The Star’s share price declined by over 25 per cent, wiping more than $1 billion from the company’s value.
The allegations also prompted the Independent Liquor and Gaming Authority to announce an inquiry into whether The Star remained suitable to hold its casino licence.
The Star “intends to defend the proceedings”, as stated in an announcement to the ASX on Tuesday (8 November).
Maurice Blackburn declined to comment on the ongoing proceedings.
Lauren Croft
Lauren is a journalist at Lawyers Weekly and graduated with a Bachelor of Journalism from Macleay College. Prior to joining Lawyers Weekly, she worked as a trade journalist for media and travel industry publications and Travel Weekly. Originally born in England, Lauren enjoys trying new bars and restaurants, attending music festivals and travelling. She is also a keen snowboarder and pre-pandemic, spent a season living in a French ski resort.
