Crown Resorts Hit With Class Action Lawsuit Over Money Laundering Allegations

The gaming conglomerate, Crown Resorts, is embroiled in another legal battle, facing a class action lawsuit from stockholders who allege corporate malfeasance and willful ignorance of illicit financial activities. The legal firm Maurice Blackburn, representing the shareholders, contends that Crown’s conduct between December 11, 2014, and October 18, 2020, negatively impacted their investments. They assert that despite assurances of stringent oversight, Crown failed to adequately curb money laundering within its gaming establishments.

This lawsuit follows Crown’s recent concession that money laundering was “highly probable” within their casinos, as detailed in The Australian. In the wake of numerous inquiries and these damaging disclosures, the company’s stock value plunged by 8% on October 19th, leaving investors understandably irate and seeking restitution. This most recent legal action aims to compel Crown to repurchase shares from these investors to mitigate their financial setbacks.

Miranda Nagy, the attorney spearheading the case, stressed that investors were justified in anticipating more from a corporation that purported to prioritize its obligations. “Crown’s infrastructure seems to have enabled the utilization of its facilities and financial accounts for unlawful endeavors,” she stated, as reported by The Sydney Morning Herald. “We maintain that these lapses in governance resulted in substantial financial detriments for shareholders.”

This is not the first instance of Crown encountering significant legal trouble. In 2017, the company faced litigation after 19 staff members were apprehended in China for promoting gambling – a strictly prohibited activity in the nation. Shareholders reportedly incurred a staggering A$1.3 billion (US$981.24 million) loss during that episode. This current case is scheduled for trial in 2022 and is poised to garner significant attention.