Background

The class action follows an announcement on 24 September 2024 that Light & Wonder had been injuncted by the United States District Court of Nevada from commercialising its popular Dragon Train game. The Court held that it was “extremely likely” that Dragon Train was based on underlying mathematical formulae and artwork that Light & Wonder developers had misappropriated from Aristocrat.

On 24 September 2024, following the market announcement, Light & Wonder’s share price declined by $30.37 to $134.53 (-18.42%).

Allegations

The proceeding alleges that during the claim period, Light & Wonder engaged in misleading or deceptive conduct, by:

• failing to disclose that Light & Wonder or its employees had, or there was a likelihood that they had, misappropriated Aristocrat’s intellectual property, and that this could significantly affect the company’s ability to generate growth, revenue or profit, including from Dragon Train;
• representing to the market that Light & Wonder had lawfully designed and developed Dragon Train, and that Dragon Train would be key and material part of Light & Wonder’s future growth and revenue; and
• representing to the market that Aristocrat’s claims that Light & Wonder had misappropriated confidential information in the design and development of Dragon Train were “without merit”.

The class action alleges that investors who acquired CDIs in Light & Wonder during the claim period are entitled to compensation for loss and damage as they paid more for those shares than they ought to have paid because of the company’s conduct. The class action also alleges that some group members would not have purchased CDIs in Light & Wonder if the company had not made the misleading representations.

Registration of Interest and Information

Current and former investors who acquired CDIs in Light & Wonder, Inc (ASX:LNW) between 22 May 2023 and 24 September 2024 (inclusive) are invited to register their interest in participating in the class action by completing the online form HERE. 

A copy of the Group Proceeding Summary Statement for the class action is available HERE.

For further information email classactions@phifinneymcdonald.com.