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Star Entertainment Group Class Action

Shine Lawyers is investigating a class action on behalf of Star Entertainment Group (SGR) shareholders who suffered losses after the company’s alleged misconduct resulted in a fall in share price.

If you acquired SGR shares between 12 October 2015 and 11 October 2021, you may be eligible to join this class action.

What is the Star Entertainment Group Class Action about?

Shine Lawyers' Class Actions team is investigating a potential class action against Star Entertainment Group for alleged misleading and deceptive conduct, conduct in conflict with the interests of shareholders and breaches of their continuous disclosure obligations.

It is alleged that Star failed to disclose money-laundering, organised crime, fraud, corruption and terrorism-financing risks to the market after they were raised in a 2018 report prepared by leading consultancy KPMG. After these misconduct allegations were revealed by the media in October 2021, Star’s share price fell by 23 per cent, wiping an estimated $1 billion off its market value.

If you purchased or owned shares in Star Entertainment Group Limited (SGR) between 12 October 2015 and 11 October 2021, you may be eligible to join the class action.

Why choose Shine Lawyers’ Class Action Team

Shine Lawyers’ Class Actions Team possess the skill industry insight and dedication to deliver exceptional results for deserving Australians. We have fought for successful outcomes for our clients in class actions against high profile corporate and government entities, including Johnson & Johnson and DePuy International, Westpac Banking Corporation and the Department of Defence.

Rebecca Jancauskas, who leads this class action investigation, has been at the forefront of some of Shine’s most high-profile cases. Rebecca is a highly skilled lawyer with a proven record in complex litigation.

To learn more about our work in this area of law, visit our Class Actions page.

Can I join the Star Entertainment Group Class Action?

To be part of this class action, you must have:

  • purchased or owned shares in Star Entertainment Group Limited (SGR) during the period of 12 October 2015 and to 11 October 2021.

If you meet this criteria, you may be entitled to compensation, and are encouraged to express your interest in the class action below.

Express your interest in the class action

To express your interest on a confidential, no-cost, no-obligation basis, please click the button below and fill out the form.

If you have any questions or require any assistance, please contact our Star Entertainment Group Class Action team at [email protected] or 1800 325 172.

Background to the Star Entertainment Group Class Action

A 2018 report prepared by leading consultancy firm KPMG found the company had; no documented risk assessment process for Chinese high-roller tour groups, understated the risk of money-laundering among gamblers, and did not consider terrorism financing as required by the Anti-Money Laundering and Counter Terrorism Financing Act 2006. The KPMG report was also never disclosed to the Australian Stock Exchange.

In October 2021, The Age, The Sydney Morning Herald and 60 Minutes revealed in a joint media report, that The Star Entertainment Group was warned in 2018 that its efforts to prevent money laundering, terrorism finance and corruption in its casinos were inadequate. Following these media reports, Star’s share price fell by 23 per cent, wiping an estimated $1 billion off its market value.

The following timeline highlights the series of events alleged by the joint media report to have occurred between 2014 and 2021 that led to the drop in market value:

  • SGR is alleged to have allowed Chinese high-rollers to use special Chinese debit and credit cards to withdraw hundreds of millions of dollars in funds from Star’s hotel properties in a manner which disguised gambling activity as hotel expenses.

    SGR’s understated the level of money-laundering risk in their assessment of gamblers.

    SGR is alleged to have ran limited due diligence on junket participants.

  • Star Entertainment Group (SGR) commissioned, global audit firm KPMG to provide two reports to the board’s audit committee, which included chief executive Matt Bekier and chairman John O’Neill.

  • The board audit committee received KPMG’s confidential reports that outlined SGR was profoundly failing to combat the risk of money laundering, terrorism financing and corruption within its Sydney and Queensland casinos. The report also revealed that Star’s assessments of some gamblers appeared to understate the level of money-laundering risk and a lack of documented money-laundering risk assessments, or risk-assessment methodology for Chinese high-roller tour groups known as “junkets”.

  • At close of trading on Friday, SGR’s share price was $4.28. At close of trading on Monday, 11 October 2021, SGR’s share price was $3.30, a 23% drop in the share price.

  • SGR released a statement to the ASX noting appropriate steps would be taken to address the allegations with the relevant regulators and authorities.

  • SGR released a statement to the ASX denying the allegations that the KPMG reports were kept secret and not adequately acted on.

  • Queensland Attorney-General Shannon Fentiman announced that the Queensland state police have been engaged to investigate these allegations.

  • The NSW gaming regulator, the Independent Liquor and Gaming Authority, announced they have now backed a proposal by its lead independent investigator, Mr Bell, to hold public hearings in March 2022, instead of a previously planned private inquiry.

    Mr Bell is expected to provide his report on 30 June 2022.

Who is Shine Lawyers’ Class Action Team?

Shine Lawyers’ Class Action Team includes some of the firm’s most experienced solicitors and support staff. The team includes:

Common Questions

There are three criteria that need to be fulfilled for a class action to take place:

  • There must be seven or more people claiming;
  • The claims must arise out of the same, similar, or related circumstances; and
  • The claim must relate to at least one common issue of law or fact.

Class actions in Australia work on an opt-out model. This means that all potential claimants become group members of the action whether they intend to participate or not. These group members are bound by the judgment of the court or settlement unless they opt-out. The group members in a class action are usually notified about the class action by order of the Court.

Due to the size of each individual claim, the costs of running this action as an individual would quickly exceed the potential damages recoverable. As each group member’s claim involves many common questions of fact and law, running this action as a class reduces the average cost of litigation to a client by only addressing the common issues once at trial, instead of multiple times.

Due to the nature of class actions, the first stage of the proceedings can take between twelve months to three years or more from its commencement.

Unless a settlement is reached, the first stage will only resolve the representative’s claims and the common issues of the proceedings, with group member claims to be resolved individually at a second stage of the proceedings.

It costs you nothing to join the class action, and you will not have to pay any out-of-pocket costs. You will have no liability for legal costs if the class action is unsuccessful.