Crown sues Riverstone over $72.5m settlement cover
Crown Resorts has taken an insurer to the Supreme Court, claiming it refused to pay out on a policy needed to help fund its $72.5 million shareholder class action settlement.
Court documents filed in the Supreme Court of Victoria allege Riverstone International has refused to pay out on two excess policies, the fourth and fifth layers of Crown's cover, where it carried half the risk. Crown is seeking the payout plus interest, but the amount hasn't been disclosed.
Crown has also claimed that Riverstone, along with other insurers, told the casino operator to act as though it was "uninsured" during discussions to settle the class action. It is unclear why that instruction was issued, and Riverstone is yet to lodge its defence. Riverstone declined to comment, and Crown did not respond to requests for comment.
Crown held multiple layers of directors and officers insurance, covering shareholder lawsuits and protecting board members and executives from personal financial loss. Ahead of the settlement, it effectively exhausted its primary level, with insurer AIG paying out $7.5 million. Additional layers of cover were arranged to provide a higher level of protection.
The class action was filed by Maurice Blackburn in 2020, after Crown's share price fell following AUSTRAC's October 2020 announcement that it was investigating the business. It alleged Crown failed to inform the market about its anti-money laundering compliance shortcomings. Those shortcomings emerged through state governance inquiries triggered by reporting from the SMH and its partner publications, including allegations that VIP Asian junket operators facilitated money laundering at the Melbourne resort.
Crown settled in 2025 without admitting wrongdoing. The operator, which runs its flagship Melbourne casino as well as venues in Sydney and Perth, is no longer listed on the ASX after Blackstone bought it for about $8.9 billion in 2022.
The dispute lands amid upheaval across Australia's casino sector, with rival Star Entertainment under scrutiny over its governance, leadership and culture. Last week, New South Wales and Queensland extended the suspension of Star's Sydney casino licence by a further nine months, with a manager appointed to provide external oversight while trading continues.
Queensland also deferred a 90-day suspension of Star's Gold Coast licence, due to start on September 30, by six months, giving the operator more time to demonstrate its remediation efforts.
Jonathan Jackson, 30th September 2026
