New Zealand’s Department of Internal Affairs later found similar and fined SkyCity $4.2m.
The AFR reports the claim alleges eight named defendants “breached their duties of care and diligence ... to act in good faith in the best interests of the corporation”.
The claim is said to target former chief executives Graeme Stephens and Michael Ahern, as well as five other former senior staff in legal and regulatory management roles.
Former SkyCity deputy chairman Bruce Carter is also said to be named as a defendant.
The action is reportedly being brought by King & Wood Mallesons, on behalf of SkyCity shareholder Stephen Wright.
Questions to Litigation Capital Management about the claim were not immediately responded to.
A SkyCity spokesman this morning told the Herald: “We are aware of the proposed claim against former executives and directors of SkyCity Adelaide, which requires the court to give special leave in order for the proceedings to be brought on behalf of SkyCity Adelaide. As this is before the courts, SkyCity will not comment further.”
The action comes after a rocky few years for the Australian casino industry, which is facing dramatically reduced tourism numbers after the pandemic, and assertive regulators who have issued hundreds of millions in fines to operators across the Tasman.
SkyCity is also heavily involved in local court action with a suit flagged last month against Fletcher Building over the nearly decade-late delivery of its New Zealand International Convention Centre.
Matt Nippert is an Auckland-based investigations reporter covering white-collar and transnational crimes and the intersection of politics and business. He has won more than a dozen awards for his journalism – including twice being named Reporter of the Year – and joined the Herald in 2014 after having spent the decade prior reporting from business newspapers and national magazines.
