Investors hit ‘deceptive’ Star Entertainment with more class actions

The gaming group will defend the latest legal challenges as more investors line up to ‘recover losses’ from the embattled casino giant.

The Star Entertainment Group is facing two more class action from investors. Former CEO Matt Bekier left the organisation last year during a review into its governance. Picture: Glenn Hampson

Two more law firms have filed class actions against The Star Entertainment Group.

In its action on behalf of Star shareholders, law firm Phi Finney McDonald argued the casino group’s share price was inflated due to breaches of continuous disclosure obligations and misleading and deceptive conduct.

Star also told the market on Tuesday that Shine Lawyers had served a statement of claim for a securities class action in the Supreme Court of Victoria.

PFM claimed Star failed to inform investors of systemic noncompliance with anti-money laundering and counter-terrorism law, conduct disguising gambling money as hotel expenses, and other contraventions.

It said the lawsuit, also filed its action in the Supreme Court of Victoria, aimed to recover losses on behalf of investors who purchased or held shares during the period between March 29, 2016 until June 13, 2022.

“We have conducted detailed due diligence into the proceeding, including the Bell Review in NSW, the Gotterson Review in Queensland, the AUSTRAC proceeding against Star and the ASIC proceeding against current and former directors of Star,” Phi Finney McDonald director Tim Finney said.

The representative plaintiff for investors is Jowene, as trustee for Biro Citer Souvenirs Pty Limited Pension Fund. The class action is funded by Woodsford, a global ESG engagement and litigation finance business.

Star Entertainment noted the claim was “substantially similar” to the separate securities class actions filed by Slater & Gordon, announced on March 30 and Maurice Blackburn on November 7.

Shine Lawyers’ claim alleges that in the period between 29 March 2016 and 25 May 2022, Star made misleading representations and did not disclose information which should have been disclosed, including about its systems and processes for compliance with anti-money laundering and counter-terrorism financing obligations, and conduct relating to junkets, Star’s accounts with the Bank of China Macau, and China Union Pay transitions.

Star said it intends to defend the proceedings.

The class actions add to legal action by the Australian Securities and Investments Commission against 11 of the group’s current and former directors and executives.

In December, ASIC started Federal Court action alleging they oversaw a major expansion in the relationship with figures that had criminal links without addressing money laundering concerns.

ASIC’s action prompted chairman Ben Heap and director Katie Lahey to announce they would exit the board.

Sources said the defendants’ legal costs would likely be covered by Star’s insurance policy.

Star Entertainment shares closed 2c lower at $1.90 on Tuesday.

Originally published as Investors hit ‘deceptive’ Star Entertainment with more class actions