Victoria has initiated a collective legal action against Star Entertainment Group, delivering another setback to the Australian gaming behemoth.
The legal action, submitted by Maurice Blackburn Lawyers, asserts that Star Entertainment Group disseminated a series of deceptive statements between March 29, 2016, and March 16, 2022.
These pronouncements pertain to Star Entertainment Group’s adherence systems and procedures for its anti-money laundering and counter-terrorism financing responsibilities, alleging that it neglected to divulge pertinent information to the market regarding these matters and conducted business in a manner that prejudiced the interests of its constituents.
Star Entertainment Group stated that the legal action is “essentially identical” to a separate securities class action initiated by Slater and Gordon Lawyers in March.
Star Entertainment Group indicated that it will defend the legal action but refrained from providing further commentary on the matter.
The recent legal action follows the issuance of “show cause notices” by the Office of Liquor and Gaming Regulation (OLGR) last week to two of Star Entertainment Group’s Queensland casinos.
These notices were disseminated subsequent to the completion of the Gotterson Review last month.
This report uncovers a string of organizational shortcomings that prompted the state government to deem the casino ineligible for its permit.
Star Entertainment has been instructed to present proof by November 25th to sidestep enforcement measures against the operator.
The notification demands Star Entertainment to furnish evidence by November 25th to forestall enforcement actions against the operator.
Star Entertainment’s contentious activities encompass multiple states and locations. An inquiry into whether Star Entertainment could retain a license in New South Wales concluded the operator was unfit to hold a license.
The investigation unearthed that the casino misled financial institutions and regulatory bodies about the rationale behind UnionPay transactions, sought individuals associated with organized crime, and scrutinized the company’s past dealings with VIP room operators.
Star Entertainment’s existing social responsibility, anti-money laundering, and counter-terrorism financing strategies were also deemed insufficient.
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