The arrests and charges for promoting gambling in China prompted Crown's share price to dive almost 14 per cent,wiping more than $1.3 billion from the company's market value. Shareholders have launched a class action claiming Crown did not tell them about the risks it was taking in China,where gambling is illegal,and seeking compensation for the money they lost.
The NSW inquiry,which has the same powers as a royal commission,sought witness statements submitted as evidence to the class action and called Crown's former chief executive Rowen Craigie and its current casino boss Barry Felstead to give evidence about the incident next week.
But Crown wanted the inquiry to be delayed or held in private. Its lawyers argued that preparing for the inquiry as well as class action hearings set for November would"impose a significant personal burden"on the witnesses which"may be oppressive"and"may be quite dangerous for their wellbeing",according to a written discission released by the inquiry. Crown
Neil Young,QC,appearing for Crown,said witnesses giving evidence twice in a short space of time and undergoing repeat cross-examination could prejudice Crown in the class action.
Going ahead with the public hearings could result in"untold damage"to Crown and possibly"amount to an interference with the administration of justice in the Federal Court".
He raised the issue of Crown's former head of VIP operations,Jason O'Connor,whose 10 months in a Chinese jail was"particularly harrowing".
In dismissing Crown's application,Commissioner Patricia Bergin,SC,said it was not uncommon for Commissions of Inquiry or Royal Commissions and civil,criminal or regulatory proceedings to run concurrently,while finding argument about the burden on witnesses"really not an issue".