Slater and Gordon Lawyers filed the class action in the Victorian Supreme Court on 29 March on behalf of investors who acquired shares between 29 March 2016 and 16 March 2022.
The 108-page statement of claim details Star engaged in “misleading” or “deceptive” representation about its compliance with regulatory obligations.
Star has been in the spotlight since October 2021, following reports it 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 allegations prompted the Independent Liquor and Gaming Authority to announce an inquiry into whether Star remained suitable to hold its casino licence, led by Adam Bell SC, which began earlier this month.
Star’s CEO and managing director Mathias Bekier resigned this week in response to the evidence given to the public hearing which included allegations that Star misled its banks and the NSW casino regulator and ignored clear risks of money laundering.
“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,” Slater and Gordon Class Actions senior associate Ben Zocco said.
“Star insisted that it took compliance seriously and ran its business ethically, honestly and with integrity. Our investigations to date, in addition to the extraordinary evidence revealed so far in the Bell Inquiry, suggests that they did everything but,” he continued.
The case also asserts that Star’s representations about policies being in place to mitigate risks such as money laundering, corruption, bribery, insider trading and restrictions on the use of gambling products were misleading or deceptive, as were claims that any conduct by Star’s directors or employees that was inconsistent with company values would not be tolerated.
“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,” Mr Zocco said.
“Our case is that Star failed to do so, and, therefore, investors are entitled to compensation for their losses.”
Star’s share price declined by more than 25 per cent back in October, wiping more than $1 billion from the company’s value. The drop has since continued to just over $3 per share.
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
