Light & Wonder has received notice that a class action lawsuit has been filed in the Supreme Court of Victoria, Australia, on behalf of its shareholders.
While the dispute between Light & Wonder and Aristocrat ended earlier this year, it seems that the studio will have to tackle litigation from a new angle.
The original case focused on Light & Wonder’s Dragon Train game, which was accused of using confidential trade secrets and copyright works from outside the company.
Eventually, Light & Wonder acknowledged that certain mathematical information from Aristocrat was used in the development of the game, and as such, the company permanently ceased commercialisation of the game worldwide.
The new case has been filed by Phi Hinney McDonald, a specialist litigation law firm, focusing on group litigation and shareholder class actions.
According to the release: “The claim alleges that representations provided by Light & Wonder regarding its Dragon Train game lacked reasonable grounds and is brought on behalf of shareholders who acquired an interest in Light & Wonder Chess Depositary Interests (CDIs) between 22 May 2023 and 24 September 2024 (inclusive).”
Light & Wonder has responded that it will “vigorously defend” itself during the proceedings.
This is not the first time that shareholders have pushed back against company decisions in this industry.
Last year saw a long-running dispute between HG Vora and Penn Entertainment that was triggered when the operator refused to appoint individuals recommended by HG Vora to the Board.
Over the following months, both companies published various press releases about the other.
Finally, this year, Penn announced the appointment of three new Independent Directors to its Board as a simultaneous cooperation agreement with HG Vora Capital Management.
Light & Wonder recently won a ten-year contract to work with the Illinois Gaming Board (IGB) following a competitive public bidding process
