Australian casino operator Crown Resorts Ltd. (CWN.AU) said it was hit with a class action on Monday connected to the arrests of its employees in China.
The lawsuit was filed in the Federal Court of Australia by law firm Maurice Blackburn. The firm alleges shareholders should have been told that Crown was taking risks with its China VIP operations.
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Crown's share price dropped by some 14% on Oct. 17, 2016, after it became known that Crown employees tied to its VIP program had been arrested. The company's VIP revenue also ultimately declined.
The employees later pleaded guilty to gambling crimes. Casino gambling is illegal in mainland China.
Crown, controlled by billionaire James Packer, said it would "vigorously defend" itself against the suit.
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(END) Dow Jones Newswires
December 03, 2017 20:02 ET (01:02 GMT)