Victoria has initiated a collective legal action against Star Entertainment Group, the most recent setback for the Australian gambling behemoth.
The legal action, submitted by the law firm Maurice Blackburn, asserts that Star Entertainment Group made a series of deceptive statements between March 29, 2016, and March 16, 2022.
The legal action alleges that Star Entertainment Group had issues with its compliance systems and procedures regarding anti-money laundering and counter-terrorism financing responsibilities. The company supposedly neglected to disclose pertinent information about these matters to the market and conducted business in a manner that negatively impacted shareholder interests.
Star Entertainment Group stated that the legal action is “essentially the same” as another collective legal action filed by Slater and Gordon in March.
Star Entertainment Group indicated that it will defend the legal action but declined to provide further commentary.
The legal action follows the issuance of “show cause notices” to two of Star Entertainment Group’s Queensland casinos by the Office of Liquor and Gaming Regulation (OLGR) last week.
The notices were issued after the Gotterson Review, which concluded last month.
This document exposes a string of organizational shortcomings that prompted the state administration to deem the casino ineligible for a permit.
The “justification for choice” notification granted Star Entertainment until November 25 to furnish proof to sidestep enforcement measures against the operator.
The probe uncovered that the casino deceived banks and oversight bodies by fabricating claims about the intent of UnionPay transactions, seeking individuals with ties to criminal organizations, and scrutinizing the company’s past dealings with junket operators.
Star Entertainment’s contentious activities extended across various states and locations. An inquiry in New South Wales concerning whether Star Entertainment could retain a license in that jurisdiction concluded that the operator was unsuitable.
Star Entertainment’s existing social responsibility, as well as anti-money laundering and counter-terrorism financing approaches, were also determined to be insufficient.
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