Suits cloud The Star after price smashed

THE Star Entertainment Group is staring down the barrel of two proposed shareholder class actions after its share price dropped more than 20 per cent last week.

The rout followed media reports about alleged inaction over money-laundering risks at its Australian casinos.

Star has labelled the reports “misleading”.

Class-action law firms Slater & Gordon and Maurice Blackburn on Monday confirmed they were investigating potential legal action.

Slater & Gordon class actions practice group leader Emma Pelka-Caven said she was investigating whether shareholders had suffered a loss as a result of “materially incorrect information” when the allegations caused Star’s share price to collapse at the start of last week.

Maurice Blackburn principal Vavaa Mawuli said its case would allege a number of issues including that Star breached continuous disclosure obligations.

Star said it was “not aware of any proceedings having been filed.” Star shares rose 1c to $3.70 on Monday.