Crown money laundering risk class action (Crown II)

About this class action 

Maurice Blackburn, on behalf of our client Greg Lieberman, has filed a class action in the Supreme Court of Victoria against Crown Resorts Limited (ASX:CWN) alleging that in the period from 11 December 2014 to 18 October 2020, Crown had inadequate systems and processes for ensuring compliance with its obligations under anti-money laundering laws, including as they applied to its VIP international business and engagement with overseas junket tour operators, and also had inadequate systems and processes for ensuring compliance with its casino taxation obligations.

The class action follows explosive evidence by Crown directors and executives at the NSW Casino Inquiry in 2020 (and at subsequent Royal Commissions in Victoria and Western Australia), and a concession from Crown it was “more probable than not” that criminals had laundered money through bank accounts of its subsidiaries. At the AGM on 22 October 2020, chairwoman Helen Coonan “unreservedly apologised” for Crown’s “governance and risk management failings”.

The claim alleges that Crown engaged in misleading and deceptive conduct; breached its continuous disclosure obligations; and conducted its affairs contrary to the interests of members as a whole in the period.

This class action has been launched following Crown’s ASX announcement early on 19 October 2020 that the anti-money laundering regulator, AUSTRAC, had initiated a formal enforcement investigation into Crown having identified potential non-compliance in relation to ongoing customer due diligence, and adopting, maintaining and complying with an anti-money laundering/counter-terrorism financing program. Following that announcement, there was a significant market response, with a decline in the Crown share price of over 8% on 19 October 2020.

The class action aims to recover compensation from the company.

Earlier class action against Crown – Crown (China Arrests) Class Action

This is the second class action Maurice Blackburn has launched against Crown. Maurice Blackburn previously ran a class action against Crown on behalf of shareholders who purchased Crown shares in the period 6 February 2015 to 16 October 2016 (Crown (China Arrests) Class Action). That case followed on a fall in the company’s share price on 17 October 2016 after revelations that 19 Crown employees had been detained in China on suspicion of engaging in illegal marketing of its gambling services. That class action has now concluded.