In Australia and The Star Entertainment Group Limited has reportedly been hit by a class-action lawsuit over claims the local casino operator had engaged in ‘misleading or deceptive conduct.’
According to a Tuesday report from the Reuters news service published US News and World Report, the Brisbane-headquartered firm is currently the subject of a state-sanctioned investigation being run by officials in the state of New South Wales that could well result in the loss of the casino license for its The Star Sydney property. This inquiry was purportedly launched some eight months after rival operator Crown Resorts Limited was refused permission to bring gambling to its new Crown Sydney venue owing to a slew of money laundering allegations.
Deceptive discovery:
The lawsuit against The Star Entertainment Group Limited was reportedly initiated by Melbourne-headquartered law firm Slater and Gordon in the Supreme Court of Victoria and alleges that the casino company had failed to comply with a range of disclosure requirements. The action purportedly also contends that the Sydney-listed firm had engaged in ‘misleading or deceptive conduct’ during the six years from March of 2016 regarding its controls, systems, operations and regulatory practices.
Covert condition:
The Australian Broadcasting Corporation reported yesterday that the lawsuit was launched on behalf of a group of unnamed investors in The Star Entertainment Group Limited and additionally claims that the Sydney-listed firm had led its backers into believing it was a model casino operator when it was in reality struggling to mitigate corruption, money laundering and bribery.
Regrettable revelations:
Ben Zocco from Slater and Gordon reportedly told the broadcaster that the legal action was initiated after the New South Wales probe into The Star Entertainment Group Limited heard how the casino operator may have hidden some $667 million in illicit gambling transactions from its banks. This ongoing examination purportedly furthermore uncovered evidence on how the company, which recently saw Matt Bekier step down as Managing Director and Chief Executive Officer, had continued working with thorny junket enterprise Suncity Group despite telling the market that the two had parted ways.
Reportedly read a statement from Zocco…
“When investors purchase shares in a listed company, they are entitled to assume that all of the material information relevant to its financial position had been disclosed to the market. The Star Entertainment Group Limited insisted that it took compliance seriously and ran its business ethically, honestly and with integrity but our investigations to date, in addition to the extraordinary evidence revealed so far in the inquiry, suggests that it did everything but.”
