Shares in The Star Entertainment Group Ltd (ASX: SGR) are inching lower again on Wednesday and now trade at $3.23 apiece in afternoon trade.
The group is coming off a whirlwind where its former managing director and CEO, Matt Bekier, resigned earlier this week.
Star is also under fire for its anti-money laundering (AML) compliance and ability to prevent potential fraud from occurring at its licensed premises in an ongoing inquiry.
The bad news keeps on rolling in today, with the group announcing it has been served a class action in the Supreme Court of Victoria.
What is going on with Star Entertainment today?
The spillover from an ongoing review into Star’s operations has led shareholders to believe the group wasn’t transparent in its dealings with questionable figures and practices.
As The Motley Fool’s Brooke Cooper reported earlier this week, Star’s “former chief risk officer Paul McWilliams told the inquiry that Bekier “was in … a sulk” when presented with the report.”
“McWilliams also said that the CEO appeared to believe that KPMG didn’t know what they were talking about”.
Now it’s apparent that stakeholders – like regulators – have had enough and are demanding more answers from the company.
“The Star Entertainment Group has been served by Slater & Gordon with a statement of claim for a securities class action in the Supreme Court of Victoria,” it said in a statement today.
“The claim alleges The Star failed to comply with continuous disclosure requirements and engaged in
misleading or deceptive conduct between 29 March 2016 and 16 March 2022 through various alleged
disclosures or non-disclosures about its systems, controls, operations and regulatory risks,” it read.
Each of the allegations is in reference to the ongoing ILGA inquiry and media reports, Star confirmed.
“The Star intends to defend the proceedings”.
Star Entertainment share price snapshot
In the last 12 months, the Star Entertainment share price has collapsed by 15% and is now 12% down for the year to date.
In the previous month, things have worsened and shares are down a further 3.5% at the time of writing.
The post Star Entertainment (ASX:SGR) share price slides as bad news keeps rolling in appeared first on The Motley Fool Australia.
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More reading
- Star Entertainment (ASX:SGR) share price slips after CEO steps down
- Why is the Star Entertainment (ASX:SGR) share price slumping to fresh 52-week lows?
Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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