Maurice Blackburn files second class action against Crown Resorts over money laundering risk allegations

Maurice Blackburn Lawyers has filed a second class action against Crown Resorts Limited with the new action targeting Crown over alleged money laundering allegations

Maurice Blackburn Lawyers has filed a second class action against Crown Resorts Limited (ASX:CWN) – with the new action targeting Crown over alleged money laundering allegations following explosive evidence by Crown directors and executives at the NSW Casino Inquiry this year, and a concession from Crown it was “more probable than not” that criminals had laundered money through bank accounts of its subsidiaries.

Filed in the Supreme Court of Victoria, the claim covers a lengthy period from 11 December 2014 to 18 October 2020, and alleges Crown had inadequate systems and processes for ensuring compliance with its obligations under anti-money laundering laws, including as they applied to its VIP international business and engagement with overseas junket tour operators.  At the AGM on 22 October 2020, chairwoman Helen Coonan “unreservedly apologised” for Crown’s “governance and risk management failings”.

The new class action claim alleges that Crown engaged in misleading and deceptive conduct; breached its continuous disclosure obligations; and conducted its affairs contrary to the interests of members as a whole in the period.

This new class action has been launched following Crown’s ASX announcement early on 19 October 2020 that the anti-money laundering regulator, AUSTRAC, had initiated a formal enforcement investigation into Crown having identified potential non-compliance in relation to ongoing customer due diligence, and adopting, maintaining and complying with an anti-money laundering / counter terrorism financing program.  Following that announcement, there was a significant market response, with a decline in the Crown share price of over 8% on 19 October 2020.

The class action aims to recover compensation from the company, seeks the potential buy-back of investors’ shares at a fair value, and seeks that Crown implement a proper anti-money laundering training program. 

Applicants’ Solicitors: Maurice Blackburn;
Applicants’ Funder: N/A;
Media release: https://www.mauriceblackburn.com.au/class-actions/current-class-actions/crown-resorts-class-action/

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