Light & Wonder, Inc. announced on September 23, 2024, that the U.S. District Court for the District of Nevada granted Aristocrat Leisure Limited a preliminary injunction concerning L&W’s Dragon Train game. Aristocrat alleged that Light & Wonder misappropriated trade secrets in the development of the game. The company expressed its disagreement with the judge’s decision and stated its intention to promptly file an appeal, committing to vigorously defend against Aristocrat’s claims.
Despite the injunction, Light & Wonder reaffirmed its 2025 $1.4 billion Targeted Consolidated AEBITDA. The company estimated that Dragon Train's contribution to this target was less than 5%, indicating a limited overall financial impact. Management is actively pursuing key initiatives to mitigate any immediate and continuing business disruption resulting from the court order.
Light & Wonder also confirmed it is already working on new iterations of the Dragon Train franchise that are consistent with the terms of the court’s ruling. The company emphasized its diversified portfolio of successful game franchises and increased investment in its R&D engine, which it believes provides a competitive advantage not tied to any single game.
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