Crown Money Laundering Risk Class Action
Registration for the Crown Resorts II Class Action
Maurice Blackburn, on behalf of our client Greg Lieberman, on 11 December 2020 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, and also had inadequate systems and processes for ensuring compliance with its casino taxation obligations.
The class action follows explosive evidence by Crown directors and executives at the NSW Casino Inquiry in 2020 (and at subsequent Royal Commissions in Victoria and Western Australia), and 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 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.
This case is being run as an open class action.
Am I eligible to join the Class Action?
You are eligible to register for the Crown Money Laundering Risk Class Action (Crown Resorts II Class Action) 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 are eligible to register, you will be asked to enter all trade data in Crown shares back to 2007.
Registration process
You can register your participation in the class action by completing this form.
During the registration process you will be notified of the Group Cost Order made by the Supreme Court of Victoria on 22 December 2022 and the percentages rates set out in that order (which governs the basis on which legal costs will be recovered by Maurice Blackburn in this matter). More information on this is available below.
If you would like more information, or if you have any questions about this process,
please contact us by emailing CrownAML@mauriceblackburn.com.au or call 1800 497 192.
During the registration process, you will need to provide the following details, to the extent that you are able to:
- an email address, which you check regularly;
- the claimant’s Holder Identification Number (HIN) or relevant Security Holder Reference Number (SRN), if you know it;
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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 held the shares jointly with another person, that other person’s name; and
- if the claimant has multiple holdings of shares, separate transaction details for each holding.
You will also be asked to provide details about the claimant’s shareholding(s), including:
- the number of CWN shares that the claimant held on 11 December 2014;
- the date, quantity and price of the claimant’s acquisitions of CWN shares from the commencement of trading on 3 December 2007 to 18 October 2020; and
- the date, quantity and price of the claimant’s disposals of CWN shares from the commencement of trading on 3 December 2007 to 18 October 2020.
Group Costs Order (GCO)
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As noted above, on 22 December 2022 the Supreme Court of Victoria made a GCO in relation to this proceeding. This means that, in the event of a successful outcome in this proceeding, the legal costs payable to Maurice Blackburn will be calculated as a percentage of the amount which is ultimately recovered for the benefit of group members (and not on the more traditional time-based method of charging). The GCO percentage is intended to cover all legal costs in the matter – there are no additional charges for disbursements, or any charges payable for litigation funding.
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The GCO percentage rates are as follows (and are subject to the power of the Court to amend the GCO at a later date):
For each dollar of resolution sum that is recovered between:
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The applicable GCO percentage (incl GST) is:
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$0 – 100 million
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27.5%
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$100.1 million - $150 million
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22.0%
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Over $150 million
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16.5%
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If you have previously signed a Retainer and Costs Agreement in this matter, the GCO supersedes the Retainer to the extent of any inconsistency. You do not now need to sign a Retainer and Costs Agreement given the GCO.
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If you would like more information, or if you have any questions about this process,
please contact us by emailing CrownAML@mauriceblackburn.com.au or call 1800 497 192.
Institutional investors
Institutional investors are not required to provide details of holdings and share transactions at this stage. Please contact Maurice Blackburn on 1800 497 192 or at CrownAML@mauriceblackburn.com.au to provide your contact details and receive an Institutional Investor Claim Package. The Claim Package includes a trade data template for you to complete and return to us.
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Registration Complete
Thank you for registering your interest in the Crown Money Laundering Risk Class Action.
Your reference number for this registration is:
Please note that you will receive an email confirming receipt of your registration.
If you do not receive this email within 24 hours, please contact Maurice Blackburn
by email at CrownAML@mauriceblackburn.com.au to confirm your registration.