The Light & Wonder Inc (ASX: LNW) share price is in focus today after the company resolved its litigation with Aristocrat Leisure Ltd (ASX: ALL), agreeing to pay USD $127.5 million (around AUD $190 million) to settle claims of misappropriation of intellectual property.
What did Light & Wonder report?
- Settlement of litigation with Aristocrat Leisure for USD $127.5 million (approx. AUD $190 million)
- Agreement to permanently cease and remove Dragon Train and Jewel of the Dragon games globally
- Commitment not to use Aristocrat’s intellectual property in future games
- Both parties to dismiss all related claims in Australia and the United States
- Confidential process to resolve potential issues in other existing or developing Light & Wonder games
What else do investors need to know?
The settlement addresses litigation arising from Aristocrat’s claims that elements of its proprietary game mathematics and copyright material were used in two Light & Wonder games. Both companies acknowledged the importance of innovation and intellectual property protection for the gaming industry’s healthiest competition.
Importantly, Light & Wonder stated it has improved internal processes to strengthen compliance and prevent similar issues in the future. The company took immediate action when it learned of inappropriate use of Aristocrat math, attributing the incident to the actions of a former employee.
What did Light & Wonder management say?
Light & Wonder CEO Matt Wilson said:
Light & Wonder is pleased to resolve this matter and move forward. We are firmly committed to doing business the right way – respecting our competitors’ intellectual property rights while protecting our own rights. This matter arose when a former employee inappropriately used certain Aristocrat math without our knowledge and in direct violation of our policies. Upon discovery, we took immediate action and have since implemented strengthened processes aimed at preventing similar issues in the future. This settlement protects the interests of our customers, employees, and shareholders, and allows us to continue our focus on developing and delivering the market-leading content our customers expectâwithout distraction or disruption.
What’s next for Light & Wonder?
The conclusion of this litigation removes a significant source of uncertainty for Light & Wonder, allowing the company to refocus on its core business and growth strategy. Management says the business will prioritise innovation while upholding integrity and compliance with global standards.
Light & Wonder also signalled its ongoing investment in delivering new digital and land-based gaming experiences, positioning itself as a leader in the competitive global games industry.
Light & Wonder share price snapshot
Over the past 12 months, Light & Wonder shares have risen 12%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
The post Light & Wonder settles Aristocrat lawsuit with $190m payout appeared first on The Motley Fool Australia.
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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder Inc. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.
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