Class Action brewing after global payments company delayed disclosure of money laundering concerns
02 June 2021
Shine Lawyers is considering legal action against EML Payments Limited over its failure to immediately notify the market of regulatory and governance issues affecting its subsidiary, PFS Card Services Ireland Limited (PFS).
On May 13, Ireland's Central Bank wrote to PFS to raise concerns about the risk of money laundering/counter terrorism financing, risk and control frameworks and governance within the business.
Class Actions Practice Leader Joshua Aylward said the firm was investigating whether EML's delayed response to the letter breached continuous disclosure laws. "EML did not request a trading halt for almost four days after learning of these concerns and then took another 48 hours to inform the market," Mr Aylward said.
Mr Aylward said the firm's investigation would also consider whether EML engaged in misleading or deceptive conduct.
“When shareholders invest their money into a company, they do so with the belief that that company will comply with its continuous disclosure obligations. Our claim will allege that EML failed in its obligations, significantly impacting share prices for thousands of investors,” he said.
EML is a Brisbane-based company, specialising in pre-paid gift and sports-betting cards. Following Brexit, the company was forced to shift its European operations to Ireland.
In a press statement issued by EML, the company said the Central Bank of Ireland, which raised the alarm, could issue directions which would materially impact EML’s European operations. EML’s share price closed 45.6% lower in response to the release.
Analysts have predicted volatility over the next month as investigations into PFS continue.
“Investors who purchased shares between 19 December 2020 to 17 May 2021 are encouraged to register their interest on our website for this class action,” said Mr Aylward.
To express your interest in the class action, head to our EML Payments Shareholder Class Action page.