Crown Resorts Sues Insurer Over $72.5 Million Class Action Payout

Crown Resorts has filed a Supreme Court lawsuit against RiverStone, an international insurer, after Crown Resorts was left with a $72.5 million class action payout, according to the Herald Sun in Australia. 

Now, according to court documents at the Supreme Court of Victoria, Crown is seeking $22.5 million from RiverStone, which would've been its share of the class action payout under the insurance policy. 

Crown Resorts alleges the insurer "dragged its feet for years" after it was alerted to Crown's legal troubles, "repeatedly stalling on whether it would cover the company," the Herald writes. 

RiverStone allegedly instructed Crown to act as a "prudent uninsured" during settlement negotiations with shareholders, according to court documents. RiverStone also allegedly told Crown to negotiate with shareholders as if it had no insurance coverage at all. 

However, after Crown reached a $72.5 million settlement in March 2025, RiverStone allegedly refused to pay its portion several months later. 

Crown Lawsuit Follows Years of Regulatory Scrutiny

This stems from a scandal involving Crown's operations in Perth, Sydney, and Melbourne, Australia. 

"Broad investigations into financial crime and governance failures sparked a $450m Federal Court penalty from watchdog Austrac alongside ASIC probes and government inquiries across three states," the Herald writes. 

Ultimately, regulators deemed Crown unsuitable for a license in Victoria, New South Wales, and Western Australia. 

The Herald also writes that an NSW Bergin Inquiry revealed that Crown facilitated money laundering and partnered with entities linked to organized crime. At the same time, Victoria's Royal Commission also arrived at the same conclusion more or less. However, Crown kept its license in Melbourne "under tight government supervision to avoid the economic shock of a shutdown," per the Herald. 

Earlier this year, Crown Sydney and The Star were fined after a 16-year-old gambled at casinos. In fact, the 16-year-old entered Crown Sydney 19 times. 

After it admitted to breaking the law, Crown Melbourne was hit with $120 million more in fines, and James Packer sold it to US private equity firm Blackstone for $8.9 billion in June 2022. 

Crown Seeks Damages and Penalty Interest From RiverStone

Ultimately, Crown is accusing RiverStone of failing to act “consistently with commercial standards of decency and fairness” and is seeking penalty interest and damages. 

The Herald reached out to RiverStone for comment but was denied, and Crown Resorts was contacted but didn't respond. 

After the fallout and the share price drop, shareholder Greg Liberman launched a group on behalf of other investors, "accusing Crown of hiding systemic financial risks and issuing misleading statements to the market."