Am I eligible to join this class action?
You're eligible to register if you:
- acquired Star shares (including by way of dividend reinvestments) in the period 12 October 2015 to 11 October 2021; or
- held Star shares as at the commencement of trade on 12 October 2015 and still held some Star shares as at 11 October 2021.
Signing up to the class action will not expose you to any upfront costs. All costs in the proceeding will be borne by Maurice Blackburn unless and until there is a successful outcome. In the event of a successful outcome, any costs payable by Maurice Blackburn will be deducted from, and will not exceed, any compensation that you're entitled to receive. All such costs are required to be considered and approved by the Court.
About this class action
Maurice Blackburn is investigating a class action against Star Entertainment Group Ltd (ASX:SGR) (formerly Echo Entertainment Group Ltd (ASX:EGP) on behalf of its shareholders following revelations of alleged inadequacies in Star’s systems for ensuring compliance with its obligations for managing anti-money laundering (AML) and counter-terrorism financing (CTF) risks.
The revelations were made on the news program 60 Minutes on 10 October 2021 following its joint investigation with The Sydney Morning Herald and The Age into Star.
At the centre of the revelations is a 2018 audit report prepared by KPMG and presented to Star’s board’s audit committee which set out deficiencies in Star’s systems and processes, noting, among other things, that there was “inadequate resourcing in place to operate the AML/CTF Program” and that its risk assessment system “does not consider terrorism financing as required by the AML/CTF Act”.
The report also highlighted parts of Star’s operations where AML/CTF risks may be higher, such as its operation of junket tours for its “high-roller” customers.
Following the revelations, there was a significant market response resulting in a decline in Star’s share price of approximately 23% ($0.98) in a single day of trading on 11 October 2021, reportedly wiping nearly $1 billion off its market value.
The proposed class action will allege that Star 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.
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