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UPDATE 1-Australia's Crown Resorts faces class action over October share plunge

Published 14/12/2020, 09:30 am
© Reuters.
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(Adds background on inquiry, quote from plaintiff)

Dec 14 (Reuters) - Law firm Maurice Blackburn has launched a second class action lawsuit against Crown Resorts CWN.AX , it said on Monday, alleging that the Australian casino giant's corporate failings caused a massive share price plunge in October.

Shares of Crown had fallen 10% on Oct. 19, when Australia's financial crime agency started investigating the company over suspected failings to comply with anti-money laundering protocols. October and November, Crown acknowledged the possibility of money laundering taking place at casinos in an Australian regulatory inquiry that touched on its government failings and its dealing with gambling tour - or "junket" - operators.

Since then, the company's gaming license has been suspended, delaying its plan to open a $1.6 billion resort in Sydney. did not immediately respond to a Reuters request for comment.

"It's been very disappointing to learn how badly Crown has behaved," lead plaintiff Greg Lieberman, a father of four from Sydney, who invested in Crown, said he law firm's statement.

The new lawsuit also alleges Crown managed operations that were not in the best interest of shareholders between December 2014 and October this year. The lawsuit is seeking an order that the company buy back shares from affected investors.

The class action follows another ongoing lawsuit by Maurice Blackburn dating back to 2017 over a share price drop after some of the company's employees were detained in China.

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