Aristocrat Leisure (ASX:ALL) and Light & Wonder (ASX:LNW) have reached a settlement resolving litigation in Australia and the United States over Light & Wonder’s Dragon Train and Jewel of the Dragon games.
Aristocrat had alleged that both games were developed using its trade secrets and copyrighted materials.
Under the confidential settlement, Light & Wonder will pay Aristocrat US$127.5 million, cease global commercialisation of the disputed games, and permanently destroy documents containing Aristocrat’s proprietary math information.
The companies also established procedures to address potential issues with existing and in-development hold-and-spin games, while Aristocrat’s claims in both jurisdictions will be dismissed.
Aristocrat CEO Trevor Croker noted the importance of protecting intellectual property to ensure fair competition, citing a preliminary injunction in September 2024 that recognised the misuse of Aristocrat’s trade secrets.
Light & Wonder CEO Matt Wilson acknowledged the issue arose from a former employee's misuse of Aristocrat math, reaffirming the company's commitment to respecting IP rights and strengthening internal safeguards.