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Highlights
- Star Entertainment shares dip on class action announcement on Wednesday.
- Slater & Gordon issued a securities class action statement to Star Entertainment in the Supreme Court of Victoria.
- Star Entertainment intends to defend the proceedings in court.
The shares of The Star Entertainment Group Limited (ASX:SGR) traded 0.614% lower on the ASX today (30 March) at AU$3.240 per share at 11:48 AM AEDT. Approximately 8.9 million shares of this ASX-listed consumer service stock were traded so far on the ASX today.
The share price of Star Entertainment has fallen approximately by 15% on the ASX over the past 12 months. On the other hand, Star Entertainment's year-to-date share price also fell close to 15% on the ASX today (29 March) at 11:48 AM AEDT.
What impacted Star Entertainment's share price on the ASX today?
There are several factors that might be responsible for share prices to fall on the ASX. One of the reasons might have been that Star Entertainment was issued with a statement of claim for a securities class action in the Supreme Court of Victoria by Slater & Gordon.
Image source: © Batcom | Megapixl.com
The claim alleges that the company failed to comply with continuous disclosure requirements. Furthermore, it also 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. The allegations also referred to ongoing ILGA inquiry and previous media reporting.
The company is currently focused on defending the proceedings.
Another probable cause for the fall in SGR's share price could be the resignation of its Managing Director (MD) and Chief Executive Officer (CEO), Matt Bekier.
On 28 March 2022, Star Entertainment announced that Matt Bekier had resigned from the position of Managing Director and CEO. The board of the company has accepted his resignation.
Bekier's decision was followed by issues raised in the public hearings related to the review of The Star Sydney being undertaken by Adam Bell SC (Review).
Although the review remains ongoing, Bekier believed that as the Managing Director and CEO of the company, he is accountable for the effectiveness and adequacy of the company's processes, policies, people and culture. Bekier added that it's the right thing for him to take responsibility.
Star Entertainment further informed that Bekier will immediately step down from the board but will work with the board to ensure a smooth transition and to exercise his executive responsibilities in an orderly manner. However, Bekier's final departure date is yet to be determined.
Read more: The Star Group (ASX:SGR) CEO Bekier resigns amid ongoing probe
About Star Entertainment:
The Star Entertainment Group Limited is a gaming, entertainment and hospitality, service provider. The company operates in three segments- The Star Sydney, Gold Coast, and Treasury Brisbane. The company is also the owner of The Star Sydney, Treasury Casino and Hotel in Brisbane, and Jupitar Hotel and Casino.
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