Crown Resorts class action
Crown Resorts Ltd (CWN) shareholders can register online to recover compensation after the listed company’s share price plunged on the back of revelations in October 2016 that several Crown employees were detained in China on suspicion of engaging in illegal marketing of its gambling services.
Maurice Blackburn has filed a class action against Crown Resorts Ltd (ASX: CWN) on behalf of shareholders after the listed company’s share price fell dramatically on the back of revelations in October 2016 that 19 Crown employees were detained in China on suspicion of engaging in illegal marketing of its gambling services.
Crown shares fell nearly 14 per cent in a day, on 17 October 2016, following confirmations of the detention of Crown staff in China, reportedly for activities designed to court Chinese VIP gamblers. Following their initial detention, the 19 Crown employees pleaded guilty to the commission of gambling offences contrary to the Criminal Law of the People’s Republic of China, and were convicted by the Baoshan District Court in June 2017.
The class action alleges contraventions of the ASIC Act and the Corporations Act, in seeking to establish that Crown engaged in misleading or deceptive conduct and/or breached its continuous disclosure obligations with respect to its operations in China.
The proceeding alleges that Crown knew or should have known of the risks it was incurring through its illegal operations in China, and the resultant risks posed to the company’s revenue streams. The Applicant alleges that the ASX and shareholders should have been informed of those risks by Crown in accordance with their legal obligations.
Shareholders that purchased Crown shares in the period 6 February 2015 to 16 October 2016 can register to participate in the class action.
T: 1800 228 665
Crown Class Action Team
Level 21, 380 La Trobe Street
Melbourne VIC 3000