NEW YORK, Oct. 22, 2022 (GLOBE NEWSWIRE) — Pomerantz LLP announces that a class action lawsuit has been filed against International Game Technology PLC (“IGT” or the “Company”) (NYSE:IGT) and certain of its officers. The class action, filed in the United States District Court for the District of New Jersey and registered as 22-cv-06094, is on behalf of a class consisting of all persons and entities other than defendants who purchased or otherwise acquired IGT securities between March 16, 2018 and August 29, 2022, both dates inclusive (the “Class Period”), seeking to recover damages caused by the Defendants’ violations of federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and some of its senior leaders.
If you are a shareholder who purchased or otherwise acquired securities of IGT during the class period, you have until December 13, 2022 to ask the court to appoint you as the lead plaintiff in the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those making inquiries by email are encouraged to include their mailing address, phone number and number of shares purchased.
IGT describes itself as “a global gaming leader that delivers entertaining and responsible gaming experiences to players across all regulated channels and segments, from gaming machines and lotteries to sports and digital betting.”
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”).
The Complaint alleges that, throughout the Class Period, the Defendants made materially false and misleading statements regarding the company’s business, operations and compliance policies. Specifically, Defendants made false and/or misleading statements and/or 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 affiliates engaged in illegal gambling operations; (iii) the foregoing conduct has subjected the Company and/or its current and/or former subsidiaries to an increased risk of litigation and significant related costs; (iv) the Company has minimized the extent and severity of its financial exposure and/or liability in connection with the Benson Stock (defined below); and (v) as a result, the Company’s public statements were materially false and misleading at all material times.
On April 9, 2018, a putative class action lawsuit was filed in federal court against DDI and a wholly owned subsidiary of the Company called International Game Technology (“IGT Subsidiary”), referred to as Benson v. Double Down Interactive, LLC et al., No. 2:18-cv-00525 (WD Wash.) (the “Benson Action”). The Benson action alleges, among other things, that the IGT subsidiary and DDI unlawfully took advantage of tens of thousands of consumers in violation of Washington law in connection with their operation of DoubleDown Casino.
On May 10, 2018, DDI and DoubleU sent a Notice of Claim (the “DDI Claim Notice”) to IGT’s subsidiary seeking indemnification and defense costs for all claims against DoubleU and its affiliates in connection with the Benson action pursuant to the terms of certain agreements. with Double U.
On August 29, 2022, IGT and DDI issued a joint press release “announcing[ing] an agreement in principle to settle Benson v. DoubleDown Interactive LLC, et. Al. trial and related proceedings (the “Benson cases”). The press release stated that, in accordance with the regulations, “[a] total of $415 million will be paid into a settlement fund of which IGT subsidiaries will contribute $269.75 million” and that “[a]Following the settlement agreement, IGT will record non-operating expenses of $119.75 million in the third quarter related to the additional loss associated with the Benson cases and related claims between IGT and DoubleDown and their respective subsidiaries and affiliates. ($150 million was booked during the second quarter).
On this news, IGT’s common stock price fell $0.46 per share, or 2.45%, to close at $18.28 per share on August 30, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris and Tel Aviv, is recognized as one of the leading firms in the areas of corporate litigation, securities and antitrust. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breaches of fiduciary duty and corporate misconduct. The firm recovered numerous multimillion-dollar damages on behalf of class members. See www.pomlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980