EML Payments Group Proceeding (Class Action)

Group proceeding brought on behalf of those who acquired an interest in ordinary shares of the defendant (EML Payments) between 19 December 2020 and 18 May 2021 (inclusive) and who suffered loss or damage by reason of the defendant’s conduct. The conduct alleged comprises representations to the market in respect of EML Payments’ acquisition of Prepaid Financial Services (Ireland) Limited (PFS) in March 2021. On 19 May 2021, EML Payments announced that PFS was under investigation by the Irish financial regulatory authorities in respect of its compliance with anti-money laundering and counter-terrorism financing (AML/CTF) obligations, causing a significant decline in EML Payments’ share price.

The claim alleges EML Payments made representations that it exceeded expected compliance with corporate governance and risk management standards and principles, which were shown to be false given the regulatory risk posed by its acquisition of PFS. The claim further alleges that EML knew or ought to have known its representations as to its own regulatory compliance were false, and that the Irish authorities were investigating PFS, but that it did not disclose the true position on either point to the market, in breach of its continuous disclosure obligations.