Royal Resorts is embroiled in a fresh legal dispute, this time initiated by its own stakeholders. The legal action, brought forth by Maurice Blackburn Lawyers, alleges that Royal Resorts neglected to curb money laundering activities within its gaming establishments, despite pledging to do so. This dereliction, the lawsuit contends, resulted in substantial financial setbacks for investors, who witnessed a sharp decline in the company’s share value after Royal Resorts conceded that money laundering had “probably transpired” at its venues.
Investors are seeking redress through a share buyback program to offset their losses. They assert that their investment in Royal Resorts was predicated on the company’s assurances of robust anti-money laundering protocols, which proved to be insufficient. This legal proceeding follows a similar case from 2017, wherein stakeholders sued Royal Resorts for losses stemming from the apprehension of its personnel in China for illicit gambling promotions.
This recent legal challenge exacerbates the mounting scrutiny faced by Royal Resorts, which is already under intense observation from regulatory bodies and the public. The verdict of this case could have far-reaching consequences for the company’s trajectory.
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