The Federal Court of Australia has dismissed the majority of cases brought against former directors of Star Entertainment Group (ASX:SGR).
Delivering his judgment on March 5, Justice Michael Lee ruled that the Australian Securities and Investments Commission failed to prove that the non-executive directors breached their duties of care and diligence regarding the company's exposure to high-risk junket operators.
While the board was largely vindicated, Justice Lee made adverse findings against former CEO Matt Bekier and former Chief Legal Officer Paula Martin.
The court found that Bekier should have been aware of critical reports concerning junket figures Qin Sixin and Alvin Chau, noting that other directors relied heavily on the information he provided.