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Star faces class action over $1 billion share slide

Business

Law firm Slater and Gordon has filed a class action against beleaguered casino operator The Star Entertainment Group claiming the company misled investors over its compliance and regulatory obligations.

 

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The action comes as revelations emerges from the Bell inquiry in NSW relating to alleged money laundering at Star’s casinos.

The evidence to the Bell inquiry led to Star’s managing director Matt Bekier handing in his resignation yesterday.

InQueensland has also established that the Queensland Office of Liquor and Gaming is continuing its investigations into Star, but the Government has so far refused to follow three other states and hold public hearings into the casino’s activities.

Star operates the Gold Coast and Brisbane Treasury casinos as well as The Star in Sydney. It is also behind the $5.6 billion Queens Wharf project in Brisbane.

The Slater and Gordon claim is more than 100 pages long and outlines how Star had continually held itself out as an ethical and responsible casino operator.

“However, widespread media reporting in October 2021 revealed that Star had cultivated high-roller players who were allegedly associated with criminal or foreign-influence operations and had failed to comply with its obligations under anti-money laundering and counter-terrorism financing laws,” the law firm said.

“In response to those media reports, Star’s share price declined by more than 25 per cent, wiping more than $1 billion from the company’s value.”

Slater and Gordon class action senior associate Ben Zocco said investors had a strong case.

“For the last six years Star has held itself out to be a model casino operator that took its obligations seriously and followed not only the letter of the law, but the spirit of the law,” Zocco said.

“When investors purchase shares in a listed company they are entitled to assume that all of the material information relevant to its financial position had been disclosed to the market.

“Our case is that Star failed to do so and, therefore, investors are entitled to compensation for their losses.”

Slater and Gordon said it believed there were thousands of investors who deserved compensation but did not reveal how many it had signed up for the class action.

 

 

 

 

 

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