Background to the proceeding
Star has held itself out as an ethical and responsible casino operator that complied with its legal and regulatory obligations.
However, widespread media reporting in October 2021 revealed that Star 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.
In response to those media reports, Star’s share price declined by more than 25 per cent, wiping more than $1 billion from the company’s value.
In 2021, the NSW Independent Casino Commission announced it would appoint Adam Bell SC to undertake a review of The Star and its Sydney Casino in order to determine if it was suitable to hold a license in NSW. On 17 October 2022 the NICC announced it had suspended The Star’s licence indefinitely, fined the casino $100 million, and appointed a manager. The NICC has since extended the suspension of The Star’s licence and the term of the appointed manager on multiple occasions, most recently to 30 September 2026.
The Allegations
This class action alleges that Star made misleading representations relating to its compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) and associated instruments (AML/CTF Laws). It is alleged that Star made misleading representations during the relevant period about its systems and processes for compliance with anti-money laundering obligations under the AML/CTF Laws. The alleged non-disclosures are also claimed to be breaches of Star’s continuous disclosure obligations as an ASX-listed company, in breach of the Corporations Act 2001 (Cth) and the ASIC Act 2001 (Cth).
The class action alleges that because of Star’s conduct, persons who purchased shares in Star between 29 March 2016 and 13 June 2022 (inclusive) paid more for those shares than they would have paid had Star complied with its obligations. The Star Class Action also alleges that some Group Members would not have purchased Star shares if Star had complied with its obligations.
Star denies the claims made against it in the Star Class Action and is defending the class action.
Group Members
This class action is brought on behalf of investors who:
Acquired an interest in Star shares between 29 March 2016 and 13 June 2022 (inclusive) (Acquisition Shareholders); or
Acquired an interest in Star shares at any point before 29 March 2016 and continued to hold those shares until 14 June 2022 (Retained Shareholders); or
Acquired long exposure to Star Shares by entering into equity swap confirmations in respect of Star Shares between 29 March 2016 and 13 June 2022.
If you fall into any of the above categories and would like to participate in the class action, and have not already registered, please register using the link below:
Opting Out
The deadline to opt out of the class action was Thursday 26 September 2024. If you opted out before the deadline, you are no longer a Group Member and are excluded from the class action.
Group Costs Order Awarded
We are pleased to advise that on 19 September 2023, Justice Nichols of the Supreme Court of Victoria approved a Group Costs Order (GCO) at a rate of 14%.
This means that 14% is the maximum deduction Slater and Gordon can make from any settlement or judgment reached in the class action in payment for its legal costs.
We confirm that you will never pay any out-of-pocket costs for Slater and Gordon to act on your behalf.
Other class actions against Star
In addition to the Slater and Gordon Star class action, three other law firms commenced class actions on behalf of Star investors. We are pleased to inform you that on 19 September 2023, the Court awarded carriage of the Star class action to Slater and Gordon, and permanently stayed the three other class actions.
If you previously registered your interest with one of the other law firms, we do not have access to that information. If you still intend to participate in a class action against Star you should register using the button above.
Frequently Asked Questions
There is currently no Court-ordered registration deadline.
If you wish to register for the class action and have not done so previously, please click the registration button above.
If you would like to confirm your registration status, you can contact us on 1800 071 827 or at star@slatergordon.com.au.
The deadline to opt out of the class action was Thursday 26 September 2024. If you opted out before the deadline, you are no longer a Group Member and are excluded from the class action.
If you cannot locate your supporting documentation, we suggest you contact your share registry, Link Market Services.
Link Market Services Australia: 1300 880 923 or starentertainment@linkmarketservices.com.au.
Key Documents
Registration and Opt Out Notice
Reply to the Defence to the Amended Statement of Claim
Defence to the Amended Statement of Claim