Crown Resorts, the biggest owner and operator of land-based casinos in Australia, has announced it was able to reach a settlement worth 125 million Australian dollars over a class-action lawsuit related to its marketing activities in China.
The lawsuit was triggered by a sharp drop of the company’s shares back in 2016, on October 17 Crown shares dropped by 14 percent after it was revealed that 19 of the firm’s staff were detained in China for illegally marketing its casino services in this country.
That big drop in share price led to law firm Maurice Blackburn launching the class-action lawsuit against Crown Resorts. The case dragged on for nearly five years and it was due to head to court on 29 October. That wasn’t the case, though, as Crown Resorts was able to reach an agreement ahead of the court date.
The value of the agreement is 125 million Australian dollars, and that amount includes interest and costs. However, the agreement clearly states that Crown Resorts does not admit its liability in this case.
Moreover, Crown Resorts added that it expects to recover a portion of the settlement from its insurers at some point in the future. That is not a certainty, though, as the company will have to undergo negotiations with the insurance companies and the outcome of those negotiations is not guaranteed.