Court grants Aristocrat preliminary injunction in Light & Wonder case

Gavel
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The United States District Court for the District of Nevada has granted a preliminary injunction to Aristocrat Technologies in its legal case against Light & Wonder regarding infringement of Aristocrat’s intellectual property.

This included misappropriation of Aristocrat’s trade secrets in connection with Light & Wonder’s ‘Dragon Train’ game.

While Aristocrat has stated that it was “extremely pleased” with the court’s decision, Light & Wonder has noted that it disagrees with the ruling and will “promptly file an appeal”.

Originally filed back in March, the case between Aristocrat and Light & Wonder has been ongoing for the past couple of months. It stems from claims of copyright infringement, trade secret misappropriation, deceptive trade practices, trade dress infringement and unfair competition.

Aristocrat claims that its ‘Dragon Link’ series has been copied by Light & Wonder with its ‘Dragon Train’ title through the hiring of the supplier’s former executives and game designers.

Aristocrat ‘extremely pleased’ with court’s decision

According to a statement from Aristocrat, the Nevada court’s Judge Gloria M Navarro granted Aristocrat’s motion for a preliminary injunction on its trade secret claims against Light & Wonder related to its ‘Dragon Train’ slot series. 

The court also enjoined Light & Wonder from “any continued or planned sale, leasing, or other commercialisation of Dragon Train”. 

The court’s decision found that Aristocrat is “extremely likely to succeed in demonstrating L&W misappropriated Aristocrat’s trade secrets in [L&W’s] development of Dragon Train”. 

In addition, the court stated that Light & Wonder “was able to develop Dragon Train without investing the equivalent time and money” by misappropriating trade secrets relating to Aristocrat’s Dragon Link and Lightning Link games.

Granting the preliminary injunction, the court noted “the public interest in protecting trade secrets and preventing competitors from receiving an unfair advantage.” 

Commenting on the court’s decision, Matthew Primmer, Chief Product Officer of Aristocrat, said: “We are extremely pleased with the court’s decision. This ruling underscores the value of our intellectual property and reaffirms our commitment to protecting the integrity of our business. 

“We will continue to innovate and invest in cutting-edge solutions, knowing that the law protects our creative efforts.”

Aristocrat noted that it will continue pursuing its case against Light & Wonder in the US “and will seek all appropriate remedies to address the harm caused by L&W’s actions”. 

The company added that it “continues to consider its legal options in Australia” after the Federal Court of Australia granted Aristocrat pre-suit discovery against Light & Wonder earlier this year.

Light & Wonder to file an appeal

In response to the court’s ruling to grant a preliminary injunction to Aristocrat, Light & Wonder has stated that it respectfully disagrees with the judge’s decision and that it will “promptly file an appeal”, adding that it will “continue to vigorously defend against Aristocrat’s claims”, including presenting its defences to a jury at a trial.

In a statement, Light & Wonder said it expects strong business growth and reaffirmed its 2025 $1.4bn targeted consolidated AEBITDA. 

It is also moving forward with several “key initiatives to mitigate the immediate impact and any continuing business disruption from today’s order”, noting that the pre-ruling estimate of 2025 consolidated AEBITDA for Dragon Train was less than 5% of the $1.4bn.

“We have a diversified portfolio of successful game franchises that are driving our strong performance and growth, of which Dragon Train is only one,” the statement read.

“Increased investment in our R&D engine has and continues to deliver innovative, engaging content that gives us a continuing competitive advantage not tied to any one game or franchise.”

Responding to the court’s ruling, Matt Wilson, President and CEO of Light & Wonder, said: “We have the best game design talent in the industry, and they are creating great games across all our channels.

“We are excited about the new games we will be featuring at the Global Gaming Expo in October. We expect our strong growth trajectory to continue, notwithstanding this decision. 

“We have built an amazing business and a solid financial foundation over the last several years with great teams driving our success and are highly confident in our future of continuing innovation and ability to achieve our stated 2025 $1.4bn targeted consolidated AEBITDA.”

Light & Wonder added that its capital management strategy remains unchanged and that it will continue to allocate capital to where it believes it can achieve the best shareholder returns.