International Game Technology PLC (IGT) Accrued a $119.72 Million Non-Operating Expense Related to Settlement of Lawsuit
A shareholder filed a class action on behalf of all persons and entities who acquired shares of International Game Technology PLC (NYSE: IGT) securities between March 16, 2018 and August 29, 2022, for violations of the Securities Exchange Act of 1934.
According to the complaint, in June 2017, IGT completed the sale of DoubleDown Interactive LLC (“DDI”), the operator of an online casino called DoubleDown Casino, to DoubleU Diamond LLC (“DoubleU”). On April 9, 2018, a putative class action was filed in federal court against DDI and a wholly-owned subsidiary of the Company called International Game Technology (“IGT Subsidiary”), styled Benson v. Double Down Interactive, LLC et al., No. 2:18-cv-00525 (W.D. Wash.) (the “Benson Action”). The Benson Action alleges, among other things, that IGT Subsidiary and DDI illegally profited from tens of thousands of consumers in violation of Washington law in connection with their operation of DoubleDown Casino.
On August 29, 2022, IGT and DDI announced “an agreement in principle to settle the Benson v. DoubleDown Interactive LLC, et. al. lawsuit and associated proceedings (the ‘Benson Matters’).” The press release stated that, pursuant to the settlement, “[a] total of $415 million will be paid into a settlement fund of which IGT’s subsidiaries will contribute $269.75 million” and that “[a]s a result of the settlement agreement, IGT will accrue a $119.75 million non-operating expense in the third quarter related to the incremental loss associated with the Benson Matters and related claims between IGT and DoubleDown and their respective subsidiaries and affiliates ($150 million was accrued in the second quarter).” On this news, IGT’s ordinary share price fell $0.46 per share, or 2.45%, to close at $18.28 per share on August 30, 2022.
The complaint alleges that during the class period defendants failed to disclose that: (i) IGT overstated its compliance with gaming and lottery laws and applicable regulations; (ii) IGT and/or one or more of its current and/or former subsidiaries engaged in illegal gambling operations; (iii) the foregoing conduct subjected the Company and/or its current and/or former subsidiaries to a heightened risk of litigation and significant related costs; and (iv) the Company downplayed the full scope and severity of its financial exposure to, and/or liabilities in connection with, the Benson Action.
What Now: If you acquired shares of International Game Technology PLC (NYSE: IGT) securities between March 16, 2018 and August 29, 2022, you may be eligible to participate in the class action against IGT. Contact us today.
Shareholders who want to be appointed lead plaintiff for the class must file their papers by December 13, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
