Light & Wonder shares spiked 11% on news the Federal Court of Australia had denied Aristocrat’s request for an injunction in its Dragon Train case.
Light & Wonder shares spiked 11% to $97.67 on Monday (10 February), following news the Federal Court of Australia had denied Aristocrat’s request for an injunction in its Dragon Train case.
Justice Burley ruled Aristocrat’s application for interlocutory relief was to be refused on Friday, marking a significant victory for Light & Wonder in the case.
It follows a US federal court taking the opposite approach in September, resulting in the US slots giant being ordered to replace all affected units in the US.
The court ruled: “Until further order, the reasons for judgment not be disclosed to or published by any person, save the parties, their legal representatives, and court staff.”
Macquarie: Ruling soothes Light & Wonder investor worries
The news was initially publicised in a research note by Macquarie, which argued the result had dispelled investor concerns about the approximately 10,000 Dragon Train units previously sold in Australia.
The two parties have until 7 March 2025 to confer and supply to Justice Burley an amended version of the court’s judgement, noting proposed redactions and areas containing confidential information.
An Aristocrat spokesperson told NEXT.io: “Aristocrat notes the Court’s ruling and will review its reasons once published. Aristocrat welcomes the undertakings given by L&W and Ms Charles, subject to final determination of the court, prior to the recent hearing in these proceedings.
“Aristocrat will continue to pursue our substantive case against L&W in Australia, and the US, and seek all appropriate remedies as we robustly defend our intellectual property.”
Emma Charles, Light & Wonder’s Dragon Train designer and a former Aristocrat employee, was let go by the business last year and is a defendant in the Australian case.
Following the US injunction last year, Light & Wonder saw a 20% fall in its share price despite the business reiterating its full-year revenue and EBITDA expectations.
Light & Wonder CEO Matt Wilson released a rare video statement in October 2024, in which he outlined that the company was developing a new, legally compliant version of Dragon Train.
This, he said, would involve reworking a relatively small part of the game found at issue by the Nevada District, including its underlying maths.
Light & Wonder declined to comment on the matter.