Light & Wonder’s stock has dropped nearly 20% over the past week amid speculation of further legal action from Aristocrat.
Analysts at Macquarie attribute the decline to concerns that a second game, Jewel of the Dragon, may also be involved in trademark and copyright disputes linked to Dragon Train.
This follows a September ruling from a Nevada District Court that barred Light & Wonder from profiting from Dragon Train, causing a prior sharp dip in the company’s share price. The court filing accuses Light & Wonder, based in Nevada, of using stolen game mechanics and Aristocrat trade secrets stored on U.S. servers, and of directing overseas infringement from its U.S. headquarters.
The filing also references the Copyright Act, noting Aristocrat’s right to seek damages for international use stemming from domestic infringement – specifically pointing to Jewel of the Dragon as a potentially infringing title.
Macquarie analysts, after discussions with company leadership, believe new legal correspondence concerning Jewel of the Dragon prompted Light & Wonder to take preemptive action.
Additionally, Aristocrat has filed a complaint alleging that Light & Wonder has failed to provide a complete list of projects involving Emma Charles, a former employee whose role is central to the ongoing legal battle.
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