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6.07pm EDT18:07
Crown Resorts has settled a class action against it over falls in its share price following the arrest of staff in China for $125m.
The settlement comes ahead of the appearance this morning of Crown’s major shareholder, James Packer, at a royal commission into the company in Western Australia.
Earlier this week, a royal commission in Victoria made damaging findings about Crown’s conduct in relation to Crown’s conduct in China in 2016, which led to the arrests.
An inquiry in NSW also criticised Crown’s conduct in China.
The company’s share price fell 14% on 17 October 2016 when news of the arrests was confirmed.
“This case demonstrates the importance of class actions, whistleblowers and investigative journalism in holding corporations to account,” Maurice Blackburn senior associate Michael Donelly said.
“Without those things, we doubt that the three separate Royal Commissions into Crown would have been established.”
In a statement to the ASX Crown said settling the lawsuit was a commercial decision and did not involve admitting liability.
“Crown expects to recover a significant portion of the settlement amount from its insurers but cannot at this stage be certain about the outcome of negotiations with insurers, or the outcome of any necessary formal steps for recovery it may need to take,” it said.
The deal is subject to approval by the federal court.
6.05pm EDT18:05
NSW records 268 cases and two deaths, Vic records 1,656 and 10 deaths
Updated
at 6.22pm EDT