Crown Resorts has launched proceedings against RiverStone International in the Supreme Court of Victoria, alleging the insurer has failed to contribute to a $72.5 million shareholder class-action settlement arising from years of scrutiny over the casino operator’s anti-money laundering controls and governance.
Crown says RiverStone is responsible for part of the settlement under excess insurance policies held by the company. Court documents indicate Crown is seeking $22.5 million from the insurer, while also pursuing interest and damages.
The dispute concerns insurance arrangements Crown maintained after its primary directors and officers cover was exhausted. RiverStone held half the risk attached to Crown’s fourth- and fifth-layer excess policies.
Insurance coverage at the centre of dispute
Crown had arranged several levels of directors and officers insurance to provide protection against claims involving the company, its directors and executives.
Its primary insurer, AIG Australia, paid $7.5 million before that layer was exhausted by legal fees and investigation expenses. Crown then turned to its additional policies as it dealt with the cost of resolving the shareholder litigation.
RiverStone assumed liabilities associated with specialist syndicates operating through the Lloyd’s insurance market in London. Crown says that coverage should respond to the class-action settlement.
According to Crown’s court filings, as Herald Sun reports, RiverStone and other insurers instructed the company to negotiate the shareholder case as a “prudent uninsured”. Another account of the proceedings describes the instruction as telling Crown to act as though it were “uninsured”.
The court material does not establish why RiverStone gave that instruction. The insurer has not yet filed its defence and has declined to comment publicly on the case.
Crown alleges RiverStone breached its obligation to act in good faith by failing to act “consistently with commercial standards of decency and fairness”. The company is asking the court to require RiverStone to meet its obligations under the disputed policies.
The precise amount Crown is seeking was not stated in some of the court documents, although other filings put RiverStone’s claimed share at $22.5 million.
Class action followed regulatory investigations
The insurance dispute stems from a shareholder class action filed in December 2020 after Crown’s share price fell following revelations about its regulatory and compliance problems.
Shareholder Greg Lieberman brought the proceeding on behalf of investors. The action alleged that Crown had failed to properly disclose weaknesses in its anti-money laundering compliance and risks associated with its international VIP business and junket arrangements.
The legal action came after extensive scrutiny of Crown’s casinos in Melbourne, Perth and Sydney.
AUSTRAC announced an enforcement investigation into Crown Melbourne in October 2020. The investigation followed allegations involving money laundering and Crown’s relationships with Asian VIP junket operators. The subsequent shareholder case alleged that Crown had failed to give investors adequate information about its compliance shortcomings.
The NSW Bergin Inquiry examined Crown’s operations and found that the company had facilitated money laundering and maintained relationships with operators linked to organised crime. Victoria’s Royal Commission reached similar conclusions in October 2021.
Regulators in Victoria, New South Wales and Western Australia subsequently found Crown unsuitable to hold casino licences. Crown was allowed to continue operating its Melbourne casino under stringent government oversight, while its Perth operations also remained subject to regulatory supervision. Crown’s Sydney casino initially faced restrictions on gaming operations.
The regulatory fallout produced further financial penalties. Crown Melbourne received $120 million in fines from state gambling regulators after admitting breaches of anti-money laundering laws. AUSTRAC also pursued Crown over financial crime compliance failures, resulting in a $450 million Federal Court penalty.
Settlement payments continue into 2027
Crown agreed in 2025 to resolve the shareholder proceeding for $72.5 million without admitting liability. The Supreme Court of Victoria approved the settlement in May 2025.
Crown is paying the settlement in three installments. It paid $20 million in 2025 and a further $25 million on May 11, 2026. The remaining $27.5 million is due on May 10, 2027.
The settlement administration is continuing, with interim distributions made to eligible group members during July 2026. The final distributions are expected after the final settlement installment is received.
The insurance dispute therefore concerns how much of Crown’s settlement expense should be covered by its excess insurance arrangements.
Crown’s ownership has also changed since the events underlying the shareholder case. US private equity firm Blackstone acquired Crown Resorts for A$8.9 billion in 2022, taking the company off the Australian Securities Exchange.
The RiverStone proceedings remain unresolved. RiverStone has declined to comment, and its formal defence has not yet been filed.