Light & Wonder shares jumped 11% to $97.67 on Monday after news that Australia’s Federal Court had rejected Aristocrat‘s bid for an interim relief in the Dragon Train case.
Judge Burley ruled that Aristocrat’s bid for interim relief should be dismissed on Friday, a significant victory for Light & Wonder in the case.
The ruling follows a US federal court taking the opposite approach in September, which resulted in the US slots operator being ordered to replace all affected machines in the States.
The court ruled: “Until further order, the reasons for the decision shall not be disclosed or published by any person other than the parties, their legal representatives and the staff of the court.”
The news was originally reported in a Macquarie report, which claimed the outcome had allayed investor concerns about the approximately 10,000 Dragon Train units previously sold in Australia.
Both sides have until March 7, 2025, to provide the judge with an amended version of the court’s decision, noting the proposed editorial changes and sections containing confidential information.
An Aristocrat spokesperson told: “Aristocrat notes the Court’s ruling and will review its reasons once published. Aristocrat welcomes the undertakings given by L&W and Ms Charles, subject to final determination of the court, prior to the recent hearing in these proceedings.
“Aristocrat will continue to pursue our substantive case against L&W in Australia, and the US, and seek all appropriate remedies as we robustly defend our intellectual property.”
Emma Charles, Light & Wonder’s Dragon Train designer and former Aristocrat employee, was fired from the company last year and is a defendant in the Australian case.
Following the US injunction last year, Light & Wonder’s share price fell 20%, despite the company reaffirming its full-year revenue and EBITDA guidance.
In October 2024, Light & Wonder CEO Matt Wilson released a video statement revealing that the company was developing a new, compliant version of Dragon Train.
He said this would involve reworking a relatively small portion of the game that was ruled in dispute by the Nevada District Court, including some of its underlying math.
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