Thursday, August 18, 2022

Class action lawsuit filed against Crown over China scandal


Australian-listed Crown Resorts announced on Monday that a class action lawsuit has been filed against the company in federal court, which it says it will “vigorously defend.”

According to local media reports, the class action lawsuit claims that the casino operator failed to inform investors of the risks it was taking in the Chinese market in 2016.

The lawsuit, filed by Maurice Blackburn Lawyers, claims that investors were harmed when Crown Resorts shares plummeted after news broke that 18 of its employees were being detained for illegal marketing in China.

The law firm alleges that shareholders should have been “apprised of the risks that Crown was taking in China and the threat they posed to the company's revenue streams," according to Maurice Blackburn head of class actions Andrew Watson.

The action will be open to investors who bought shares between February 6, 2015 and October 2016, and will cover all investors in this period.  

Watson said collective losses over the share slump are in excess of A$100 million (US$759.8 million).

Crown did not issue any further comment other than its brief ASX announcement made on Monday saying that it will defend the proceeding.

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