Crown Resorts Face $120million Lawsuit After China Arrests
Crown Resorts face another wave of legal action after their own shareholders issued a class-action lawsuit against the company and its CEO, James Packer. The Australian owned casino resorts chain have long been associated with fraudulent activity and other untimely controversy, and from last week, the list has grown longer. The company shareholders are unhappy with managing the day-to-day activities of the business and are trying to wrestle control from the founder and CEO, James Packer. He has also been in the news for several claims of inappropriate conduct and financial misdeeds.
Chinese police arrested several Macau-based Crown Resort employees due to several claims of indecent business practice. This follows a legal crackdown from the Chinese president Xi Jinping who has committed to the removal of gambling advertising and wiping out betting addiction. ©jplenio/Pixabay
Crown Resorts are undoubtedly one of the most recognizable brands in the global casino industry; while Mr Packer wears this as a badge of honor, it really isn’t something to brag about. For years, the Australian-based firm has been soaked in controversy and litigation issues relating to many factors. They’ve been accused of fraud and facilitating criminal activity, several of their former managing directors have been acquitted for accepting bribes and other financial misconduct. It’s fair to say they have one of the worst casino track records in the world.
The shareholders are angry after Chinese police made several arrests leading to the temporary closure of the Macau branch of Crown Resorts. This has impacted the company in other ways. First of all, the media picked the story up quickly, leading to a wave of negative press and a decline in public opinion. While this isn’t anything new for Crown, they’ve been working hard to get back on track, and any setback in their mission can cause significant damage. The police have been consistently monitoring all Crown locations for years.
Unreliable is certainly a term that could describe Crown as a business; time after time, they’ve misled consumers and betrayed their user base by making poor decisions, affecting the business’s overall health. While he is no managing director and his CEO title is solely identity-driven, he is still the majority shareholder and can prevent measures from passing through the board room. The rest of the board have grown impatient with Packer and are attempting to gain control and absorb the rest of the company into their conglomerate.
James Packer has been a prolific figure in the Australian casino industry since the early 2000s. After founding Crown Resorts in 2007, the company quickly rose to become one of the most successful betting firms in the world; their brand was unshakable and what followed was an extremely treacherous and unfortunate series of events. While the ensuing chaos surrounds Crown’s brand, Packer is seemingly invisible, he rarely makes any public appearance, and since his legal troubles a couple of years ago, he has removed himself from the spotlight.
Same Old Story for Crown Resorts
The latest spree of arrests has forced Crown’s shareholders to take serious action against the company itself. They have grown tired of the ineffective brand restructuring, and the consistent presence of Packer has annoyed many of the current board members. While it is difficult to surmise the current atmosphere at the company, a reasonable guess would be anguished. After years of rule-breaking and legal battles, you’d hope that Crown can finally resolve many of its past issues and start anew.
Australia’s Crown representatives are understandably furious with the Chinese authorities, but the real question remains, Why? What compelled the police to forcefully detain almost 20 employees from the Macau iteration of Crown Resorts. These questions are yet to be answered, but new insight from the police is expected in the coming weeks. The Australian casino firm now has a lot of ground to cover to repair the damage caused by this latest spree of catastrophe surrounding the business.
