Star faces securities class action lawsuit in Victoria
The claim, filed by law firm Maurice Blackburn, alleged that in the period between 29 March 2016 and 16 March 2022, Star made a series of misleading representations.
These were in reference to Star’s systems and processes for compliance with anti-money laundering and counter-terrorism financing obligations, that it failed to disclose relevant information it had about those matters to the market and conducted its affairs contrary to the interests of the members of Star as a whole.
The claim, Star said, is “substantially similar” to the separate securities class action filed by Slater & Gordon in March of this year.
Star said it intends to defend the proceedings but did not make any further comment on the case.
The latest lawsuit comes after Star last week was also issued show cause notices for its two Queensland casinos by the Office of Liquor and Gaming Regulation (OLGR).
The notices come in the wake of the Gotterson Review, which concluded last month. The report uncovered a host of institutional failings, resulting in the state government declaring that the casino was “unsuitable” to hold its licence.
The show cause notices give Star until 25 November to give evidence that may prevent the implementation of enforcement action against the operator.
Star’s controversial activities spanned multiple states and several of its venues. During New South Wales’ investigation into whether Star could hold a licence in the state, the operator was found to be an unsuitable licensee.
The investigation found that the casino misled banks and regulators on the purpose of China UnionPay transactions, sought out individuals linked to organised crime, and looked into the company’s historic dealings with junket operators.
Star’s existing social responsibility, as well as anti-money laundering and counter terrorist financing strategies, were also shown to be inadequate.