Commonwealth Bank of Australia (ASX:CBA) shareholders will seek damages in Australia's High Court on Thursday over the bank's alleged failure to disclose a AU$700 million fine to the market, which they argue inflated the value of shares, according to court documents.

The bank agreed to pay the fine in 2018 after the Australian Transaction Reports and Analysis Center (AUSTRAC) investigated it over failures related to anti-money laundering rules, including the late filing of 53,506 transactions that met the reporting threshold.

A group of shareholders claims the issues became public knowledge only after AUSTRAC issued a press release in 2017, even though the bank was aware of them earlier.

The shareholders are seeking compensation "for the inflated value of their shares attributable to the bank's wrongful failure to inform the market," according to the court documents.

An earlier court decision found that the shareholder group failed to quantify their losses and was not able to prove that a share price drop of AU$3.29 for the Commonwealth Bank of Australia was fully attributable to the non-disclosure. The group is now challenging the dismissal of their damages claim in the High Court.