The EML Payments Ltd (ASX: EML) share price is tumbling this morning after the company vowed to "vigorously defend" itself against a class action.
EML Payments is being sued by its own shareholders who claim the company engaged in misleading and deceptive conduct and breached its disclosure obligations earlier this year.
At the time of writing, the EML Payments share price is trading at $3.11, 4.6% lower than it was at yesterday's close.
Let's take a closer look at the lawsuit facing the financial services company.
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EML share price plummets on more class action news
The EML share price is in the red amid more news of a class action claiming it failed to properly inform the market of the Central Bank of Ireland's concern regarding potential anti-money laundering and counter terrorism financing framework breaches.
On 19 May, the company announced its subsidiary PFS Card Services Ireland Limited had been approached by the regulatory body regarding its concerns.
That was particularly worrying as most of the company's European operations are run through the business.
By the end of the day, the EML share price had tumbled 45%. It's still trading 36% lower than its level prior to releasing the announcement.
As The Motley Fool Australia reported yesterday, the class action alleges the company received notice from the Irish entity on 13 May.
Yet, it didn't disclose the information for days after it became aware of the issue.
It's worth noting, 13 May was a Thursday. Shares in the company traded that day and on Friday 14 May. The EML share price was put into a trading halt before the ASX opened on Monday, 17 May.
The class action is being brought about by Shine Lawyers. It was filed in the Supreme Court of Victoria yesterday.
In today's release, the company defended itself, saying: "EML considers that it has at all times complied with its disclosure obligations in that regard. EML has not been served with the proceeding at this time, denies any liability and will vigorously defend the proceedings."
Right now, the EML share price is 26% lower than it was at the start of 2021. However, it has gained 7.5% since this time last month.
