Thousands of Australian investors who put money into EML Payments Limited (EML) have filed a class action in the Supreme Court of Victoria, after a subsidiary of EML allegedly made misleading representations regarding their corporate governance and regulatory compliance.
PFS Card Services Ireland Limited (PFS), the subsidiary at the centre of the disclosure scandal, came under fire in May when Ireland’s central bank revealed “significant regulatory concerns” regarding its compliance with anti-money laundering and counter-terrorism rules.
The revelation caused EML Payments Limited’s share price to plunge 46 per cent in a day, yet it took the Brisbane-based company four days to request a trading halt.
“The Central Bank of Ireland raised the alarm over potential non-compliance with anti-money-laundering and counter-terrorism financing regulations with PFS on May 13,” said Joshua Aylward, Class Actions Practice Leader at Shine Lawyers.
“This suggested the company’s European operations could be in jeopardy, but EML failed to disclose this to the Australian share market in a timely manner,” Mr Aylward said.
Mr Aylward said a global payments company, specialising in pre-paid gift and sports-betting cards, should have strict controls and reporting structures in place to protect shareholders.
“It is alleged that EML’s conduct showed disregard for its regulatory obligations and to the thousands of Aussies who invested their money into its businesses,” he said.
Mr Aylward said investors who purchased shares in EML between 19 December 2020 and 18 May 2021 are encouraged to register their interest for the EML Payments Shareholder Class Action through the Shine Lawyers website.