The Nevada District Court ordered Light & Wonder to cease profiting off its Dragon Train series in a preliminary injunction yesterday (23 September).
According to court filings, the injunction will prevent Light & Wonder from selling, leasing or any other commercialisation of Dragon Train.
It follows Aristocrat suing the supplier in February for copyright infringement and trade secret misappropriation relating to its Dragon Link game.
The suit was allowed to proceed in June, with judge Gloria Navarro dismissing other Aristocrat claims of trade dress infringement and deceptive trade practices.
The judge wrote in her opinion: “The Court… finds it logical and reasonable to conclude Aristocrat is extremely likely to succeed in demonstrating L&W misappropriated Aristocrat’s trade secrets in its development of Dragon Train.”
Aristocrat said it will continue pursuing its case against the supplier in the US, stating it will seek “all appropriate remedies” to address the issue.
The business highlighted that the Federal Court of Australia granted it pre-suit discovery against Light & Wonder earlier in the year, and that it continued to consider its legal options in the country.
Matthew Primmer, Aristocrat chief product officer, 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.”
Light & Wonder share price slumps after decision
Light & Wonder, which is duel listed on the ASX and the Nasdaq, saw its share price slump over 20% in Australia following the news to A$128.27 (€78.71) per share before recovering slightly.
Meanwhile, the land-based and online supplier’s US share price has fallen 10.23% to $101.15 in pre-market trading.
In a statement, Light & Wonder said it intended to vigorously defend against Aristocrat’s claims and reaffirmed its 2025 outlook of $1.4bn in adjusted EBITDA.
Light & Wonder also highlighted Dragon Train represented less than 5% of its 2025 Adjusted EBITDA goal.
The provider said it is moving forward on a number of key initiatives to mitigate the immediate impact and possible business disruption.
The business added its capital management remained unchanged, with the company’s recently approved $1bn share repurchase programme moving forward, alongside future organic and inorganic investments.
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.”
Light & Wonder is also defending a separate infringement suit in the Nevada District from Evolution, which alleges it stole confidential Lightning Roulette math files and pay-out structures for its RouletteX and PowerX games.