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Light & Wonder (ASX:LNW) has soared more than +15% higher out the gate on Monday trades to over $180/sh after the company settled a lawsuit with Aristocrat Leisure over IP related to a dragon-themed gambling app for phones.
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LNW and Aristocrat are ex-casino-machine makers who have also since pivoted into online and phone-based gambling games, which are (for those out of the loop, perhaps in Western Australia) massive revenue-makers and globally a phenomenon in and of themselves.
The market likes LNW’s settlement with Aristocrat, even though it does appear, insofar as settlements go, that Aristocrat mightn’t have been a vexatious litigant when it took LNW to court for, in pub speak terms, stealing its in-house IP.
“Aristocrat brought [lawsuits] following the launch of Light & Wonder’s Dragon Train game, which Aristocrat contends was developed using Aristocrat’s trade secrets and copyright works. Aristocrat later made similar claims against Light & Wonder’s Jewel of the Dragon game,” a joint statement from both read Monday.
“Light & Wonder acknowledges that certain Aristocrat math information was used in connection with the development of both Dragon Train and Jewel of the Dragon,” Monday’s joint statement went on to say.
All in all, LNW is coughing up just south of $200M (A$190M) to Aristocrat, which in turn has agreed to discontinue litigation against LNW in Australia and the States.
Aristocrat, despite a $200M injection, has seen its share price hardly move on Monday in contrast to LNW’s win. For added context, LNW shifted its primary listing to Australia late last year, previously it was dual-listed in the U.S. It remains there still, but now offering over-the-counter exposure.
LNW last traded at $180.38/sh.
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