{"id":211332,"date":"2022-04-29T10:54:17","date_gmt":"2022-04-29T17:54:17","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=211332"},"modified":"2022-04-29T13:29:55","modified_gmt":"2022-04-29T20:29:55","slug":"crown-resorts-125m-china-arrest-settlement-approved-by-federal-court","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/crown-resorts-125m-china-arrest-settlement-approved-by-federal-court\/","title":{"rendered":"Crown Resorts $125M China Arrest Settlement Approved by Aussie Federal Court"},"content":{"rendered":"

A federal court in Melbourne has approved an AU$125 million (US$89 million) resolution to settle a class-action lawsuit brought against Crown Resorts by disgruntled shareholders.<\/p>\n

\"Crown
Crown Resorts employee Jenny Chiang leaves a Shanghai court in June 2017 to begin her prison sentence. (Image: Andy Wong\/AP<\/em>)<\/figcaption><\/figure>\n

Crown\u2019s stock plummeted 20% on the news of the arrests, wiping AU$1 billion (US$700 million) off the value of the company.<\/p>\n

Plaintiffs claimed that the share plunge was a direct result of Crown\u2019s poor corporate governance and risk management. They argued that the company had a duty to inform shareholders it was illegally marketing its services in China and placing its staff at risk.<\/p>\n

Legal firm Maurice Blackburn, which initiated the suit on behalf of shareholders, called it \u201cOne of the most serious and comprehensive breakdowns in corporate governance in Australian history.\u201d<\/strong><\/p>\n

Crown agreed<\/a> to the $125 million sum last October when the board described it as \u201ca commercial decision in the best interests of shareholders,\u201d \u2013 especially the litigious ones.<\/p>\n

Judge Justice Beach in the Supreme Court of Victoria described the settlement as \u201cvery strong\u201d and \u201cfavorable\u201d for the aggrieved parties, according to Business News Australia.<\/em><\/p>\n

Crown has said it hopes to recoup a significant portion of the payment through insurers.<\/p>\n

Chinese Cops Swoop<\/strong><\/h2>\n

The case has been simmering since 2017<\/a>, when investors sued the operator over the arrest of 19 staff members. In October 2016, Chinese authorities arrested employees in several locations on the Chinese mainland. They were eventually charged with \u201cgambling crimes\u201d — more specifically, luring Chinese high rollers to gamble at Crown\u2019s casinos abroad.<\/p>\n

Sixteen would be convicted and serve between nine and 10 months in a Shanghai prison, including the company\u2019s VIP International Division, Jason O\u2019Connor.<\/p>\n

It was a watershed moment for Crown. It subsequently withdrew exposure to foreign markets by selling interests in casinos in Asia and proposed development in Las Vegas.<\/strong><\/p>\n

VIP revenues dropped nearly 50% in the months that followed.<\/p>\n

One Down, One to Go<\/strong><\/h2>\n

Last year, a suitability inquiry in New South Wales stripped the company of its Sydney gaming license.<\/p>\n

The inquiry discovered that the Crown had never conducted an internal review of China arrests. According to the inquiry, the board was concerned that the findings of such an investigation might harm its defense in the lawsuit.<\/p>\n

The inquiry convened to address media allegations that the Crown facilitated money laundering in pursuit of profit and allowed itself to be infiltrated by organized crime via its junket operations.<\/p>\n

The company is currently facing a separate shareholder lawsuit addressing these issues, which is also being handled by Maurice Blackburn.<\/p>\n

We believe these governance failures have caused real loss to shareholders who would have expected best-practice compliance with anti-money laundering obligations, especially given Crown\u2019s repeated public statements that it took compliance with such laws seriously,\u201d asserts the complaint.<\/p><\/blockquote>\n

\u201cInstead, it appears Crown\u2019s systems left the company potentially exposed to criminal activity happening on its premises and through its bank accounts.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

A federal court in Melbourne has approved an AU$125 million (US$89 million) resolution to settle a class-action lawsuit brought against Crown Resorts by disgruntled shareholders. Crown\u2019s stock plummeted 20% on the news of the arrests, wiping AU$1 billion (US$700 million) off the value of the company. Plaintiffs claimed that the share plunge was a direct […]<\/p>\n","protected":false},"author":36,"featured_media":211333,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,60],"tags":[],"acf":[],"yoast_head":"\nCrown Resorts $125M China Arrest Settlement Approved by Federal Court<\/title>\n<meta name=\"description\" content=\"Crown Resorts will pay $125 million to litigious shareholders to share class action lawsuit over 2016 China arrests.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/crown-resorts-125m-china-arrest-settlement-approved-by-federal-court\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Crown Resorts $125M China Arrest Settlement Approved by Federal Court\" \/>\n<meta property=\"og:description\" content=\"Crown Resorts will pay $125 million to litigious shareholders to share class action lawsuit over 2016 China arrests.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/crown-resorts-125m-china-arrest-settlement-approved-by-federal-court\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2022-04-29T17:54:17+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-04-29T20:29:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/04\/crown-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"799\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Philip Conneller\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@casinoorgphilc\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Philip Conneller\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/crown-resorts-125m-china-arrest-settlement-approved-by-federal-court\/\",\"url\":\"https:\/\/www.casino.org\/news\/crown-resorts-125m-china-arrest-settlement-approved-by-federal-court\/\",\"name\":\"Crown Resorts $125M China Arrest Settlement Approved by Federal Court\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/crown-resorts-125m-china-arrest-settlement-approved-by-federal-court\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/crown-resorts-125m-china-arrest-settlement-approved-by-federal-court\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/04\/crown-1.jpg\",\"datePublished\":\"2022-04-29T17:54:17+00:00\",\"dateModified\":\"2022-04-29T20:29:55+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/58769b72851c8cf117fb58ca150ebf8b\"},\"description\":\"Crown Resorts will pay $125 million to litigious shareholders to share class action lawsuit over 2016 China arrests.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/crown-resorts-125m-china-arrest-settlement-approved-by-federal-court\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/crown-resorts-125m-china-arrest-settlement-approved-by-federal-court\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/crown-resorts-125m-china-arrest-settlement-approved-by-federal-court\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/04\/crown-1.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/04\/crown-1.jpg\",\"width\":1200,\"height\":799,\"caption\":\"Crown Resorts employee Jenny Chiang leaving a Shanghai court in June 2017 to begin her prison sentence. 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