Casino operator Crown settles class action for AUD$125m

The embattled casino operator has settled the shareholder class action commenced against it on 4 December 2017 in the Federal Court of Australia.

The class action, led by law firm Maurice Blackburn, alleged that between 1 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.”

It argued the casino operator engaged in misleading and deceptive conduct and breached its continuous disclosure obligations.

Following the settlement Crown stated that it “expects to recover a significant portion of the settlement amount from its insurers but cannot at this stage be certain about the outcome of negotiations with insurers, or the outcome of any necessary formal steps for recovery it may need to take.”

It added that its board of directors was determined that the agreement to settle the Proceeding was a commercial decision made in the best interests of Crown and its shareholders.

Earlier this week a Royal Commission conducted by the Victoria parliament, concluded that there had been a “litany of failings” in the way that Crown Melbourne had administered the laws on AML, recommending a special manager be put in place for the casino to oversee its operations for two years.