Star Entertainment's (ASX:SGR) majority directors that were sued by the Australian Securities and Investments Commission have been cleared by the Federal Court of Australia in a Thursday ruling, but ex-Chief Executive Matt Bekier has been found guilty of breaching his duties, according to a Thursday decision by the court.

ASIC had alleged that the board members mishandled risks related to junket operators and financial dealings, raising concerns about potential money laundering and criminal activity.

According to the ruling, ASIC failed to establish that the directors had "each failed to exercise their powers and discharge their duties."

However, the Federal Court found that former Chief Legal Officer Paula Martin also "failed to exercise her powers or discharge her duties as an officer of Star."

The court found that Bekier did not properly act on a KPMG report, which found weaknesses in the company's handling of money laundering risks related to junket operations.

The company's shares fell nearly 3% in recent Thursday trade.