Light & Wonder, Inc. (LNW) Investigation

The investigation focuses on Light & Wonder’s disclosures about the success of its DRAGON TRAIN® slot machines and the company’s assurances that prospects of continued gaming revenue growth the company has said is “driven by the continued success and strength of our content, including the recent debut of DRAGON TRAIN®[.]”

The propriety of such disclosures may have come under question when, on Sept. 23, 2024, the United States District Court for the District of Nevada issued a decision granting its competitor Aristrocrat Technologies’ motion for a preliminary injunction enjoining Light & Wonder from any continued or planned sale, leasing, or other commercialization of  DRAGON TRAIN®.

The court’s decision reportedly found that Aristocrat is “‘extremely likely to succeed in demonstrating [Light & Wonder] misappropriated Aristrocrat’s trade secrets in [Light & Wonder’s] development of Dragon Train.”  The court also reportedly said that Light & Wonder “‘was able to develop Dragon Train without investing the equivalent time and money.’”

Separately, the financial press has reported that Aristocrat’s allegations that DRAGON TRAIN® “bears similarity to [Aristocrat’s] own ‘Dragon Link’ series, and also questions the role of two former Aristocrat designers – Emma Charles and Lloyd Sefton – who reportedly worked on Dragon Link and are said to have also led the development of ‘Dragon Train.’”

As a result of the Sept. 23, 2024 court ruling and announcement, the price of Light & Wonder shares crashed $21.97 (-19%) and wiped out about $1.9 billion of shareholder value in a single trading day on Sept. 24, 2024.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the LNW investigation about?

We are looking into whether Light & Wonder may have knowingly misled investors about the propriety and legality of its reported gaming revenue growth.

WHAT SHOULD I DO?

I worked at LNW. What should I do?

If you were an employee of LNW, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in LNW, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any LNW investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.