Filed in Supreme Court of Victoria.
Registration is now open.
Am I eligible to join the class action?
You're eligible to register if you:
- purchased Crown shares in the period from 11 December 2014 to 18 October 2020; or
- held Crown shares as at the commencement of trade on 11 December 2014 and still held some Crown shares as at 18 October 2020.
If you're eligible to register, you will be asked to enter all trade data in Crown shares back to 2007.
About this class action
Maurice Blackburn, on behalf of our client Greg Lieberman, has filed a class action in the Supreme Court of Victoria against Crown Resorts Limited (ASX:CWN) alleging that in the period from 11 December 2014 to 18 October 2020, 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.
The class action follows 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. At the AGM on 22 October 2020, chairwoman Helen Coonan “unreservedly apologised” for Crown’s “governance and risk management failings”.
The 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.
Earlier class action against Crown – Crown Resorts I Class Action (China arrests)
This is the second class action Maurice Blackburn has launched against Crown. Maurice Blackburn is already running a class action against Crown on behalf of shareholders who purchased Crown shares in the period 6 February 2015 to 16 October 2016. That case followed on a fall in the company’s share price on 17 October 2016 after revelations that 19 Crown employees had been detained in China on suspicion of engaging in illegal marketing of its gambling services.
If you are a class member in the Crown Resorts II Class Action, you may also be a class member in the first Crown Resorts Class Action but you will need to register separately for both cases.
Frequently asked questions
Signing up to this class action will not expose you to any upfront costs. All costs in the proceeding will be borne by the Maurice Blackburn unless and until there is a successful outcome. In the event of a successful outcome, any costs payable by the Maurice Blackburn will be deducted from, and will not exceed, any compensation that you are entitled to receive. All such costs are required to be considered and approved by the Court.
No funding commission will be payable to a third party litigation funder as there is no third party litigation funder involved in the class action.
The Supreme Court of Victoria has power to make a group costs order in relation to these proceeding. Mr Lieberman, the Representative Plaintiff, may at a future time apply to the Court for such an order. A group costs order is an order of the Court in which the legal costs payable to the law firm representing the Representative Plaintiff and the class are calculated as a percentage of the amount of any award or settlement and the liability is shared among the Representative Plaintiff and all class members. The percentage is determined by the Court.
During the online registration process, we will ask you for the following details
- an email address, which you check regularly;
- the claimant’s Holder Identifier Number (HIN) or relevant Security Holder Reference Number (SRN), if you know it;
- information on your shareholdings:
- if the claimant’s shares are held on his, her or its behalf by another person or entity (such as a broker or custodian), details of both those persons or entities and the capacities in which they held those shares;
- if the claimant holds the shares jointly with another person, that other person’s name;
- if the claimant has multiple holdings of shares, separate transaction details for each holding;
- the date, quantity and price of the claimant’s Crown (CWN) share purchases and sales from 2007 to 18 October 2020.
- Institutional investors are invited to register but are not required to provide details of holdings and share transactions. We will contact you to obtain that information.
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