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EML Payments subsidiary to face class action
Thousands of Australian investors have filed a class action in the Supreme Court of Victoria against a subsidiary of listed payment solutions company EML Payments Limited for alleged misleading representations pertaining to corporate governance and regulatory compliance.
Jerome Doraisamy
PFS Card Services Ireland Limited (PFS) – a subsidiary of EML Payments Limited (ASX: EML) – was flagged for “significant regulatory concerns” six months ago by the Central Bank of Ireland with regard to its compliance with anti-money laundering and counter-terrorism rules.
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The concerns raised by the Irish central bank caused EML’s share price to “plunge 46 per cent in a day, yet it took the Brisbane-based company four days to request a trading halt”, plaintiff firm Shine Lawyers said in a statement.
“The Central Bank of Ireland raised the alarm over potential non-compliance with anti-money-laundering and counter-terrorism financing regulations with PFS on May 13,” said Shine class actions practice leader Joshua Aylward (pictured).
“This suggested the company’s European operations could be in jeopardy, but EML failed to disclose this to the Australian share market in a timely manner.”
A global payments company that specialises in prepaid gift and sports-betting cards, Mr Aylward went on, should have strict controls and reporting structures in place to protect shareholders.
“It is alleged that EML’s conduct showed disregard for its regulatory obligations and to the thousands of Aussies who invested their money into its businesses,” he said.
Mr Aylward noted that investors who purchased shares in EML between 19 December 2020 and 18 May 2021 are eligible to register their interest in the class action.
