Crown Resorts has reached a $125m settlement in a class action lawsuit filed by shareholders after revelations that the resort’s staff members were detained in China in 2016 caused the company’s share price to plunge.
The class action was based on the company’s alleged obligation to inform its shareholders of the business risks involved and the threats it posed to its revenue streams. The case was set to go to trial when Crown Resorts announced the settlement.
“Crown’s board of directors determined that the agreement to settle the proceeding was a commercial decision made in the best interests of Crown and its shareholders,” the company said.
