Shine files class action against Star Entertainment Group
06 February 2023
Shine Lawyers has filed a class action on behalf of Star Entertainment Group (ASX:SGR) shareholders after revelations of alleged misconduct caused the company’s stock price to plummet.
Star allegedly failed to make disclosures to the market about money laundering, links to organised crime, fraud, corruption, terrorism-financing risks as well as the associated regulatory risk involved in its misconduct, even after they were raised in a 2018 report prepared by leading consultancy firm KPMG.
After these misconduct allegations were revealed in October 2021, Star’s share price fell by 23 per cent and, following additional revelations, has now lost more than $1 billion off its market value.
Shine’s Joint Head of Class Actions, Craig Allsopp, said investors were the biggest losers of Star’s gamble with the truth.
“We allege Star knew, or ought to have known, that this wide-ranging misconduct occurred and that it would have a hugely detrimental impact on its shareholders once exposed.
“Star represented to investors that it was a safe bet when it was anything but, and we’ll be looking to hold Star to account for their losses,” Mr Allsopp said.
The class action alleges Star’s conduct was misleading, deceptive, and in conflict with the interests of its shareholders. It’s further alleged the company was in breach of its continuous disclosure obligations.
Anyone who purchased or owned shares in Star Entertainment Group between 29 March 2016 to 25 May 2022 could be eligible to take part in the class action.