Tag: sign

International provider of gaming technologies International Game Technology (IGT) and former IGT subsidiary DoubleDown Interactive have announced that they have succeeded in reaching an agreement in principle in connection with the legal case Benson v. DoubleDown Interactive.

The Settlement Amount of $415 Million Will Be Covered by IGT and DoubleDown Interactive

According to the terms of the settlement agreement, the total amount that will be contributed to the settlement fund will be $415 million. The amount will be divided between IGT and its subsidiaries and DoubleDown Interactive with IGT contributing $269.75 million. The amount that DoubleDown Interactive has to pay will be $145.25 million. As a result of the settlement, all plaintiffs are going to drop all claims in relation to the lawsuit.

In April 2018, Adrienne Benson filed a lawsuit against DoubleDown Interactive and an IGT subsidiary at the US District Court. Benson claimed that the online casinos owned and operated by the defendants are illegal as they operate in breach of Washington’s Recovery of Money Lost at Gambling Act and Washington’s Consumer Protection Act. In July of the same year, more plaintiffs were added to the class action. The plaintiffs accused the defendants of unjust enrichment. Their claims were in connection with the recovery of funds lost on gambling.

In order for the settlement to be finalized first the US Federal District Court for the Western District of Washington has to approve the reached settlement agreement.

Digital games and web-based platforms developer DoubleDown Interactive was a subsidiary of IGT. The gaming technologies provider sold DoubleDown Interactive to South Korea-based game production company DoubleU Games back in April 2017, for the amount of $825 million. The deal formed a part of the signed strategic partnership between IGT and DoubleU Games regarding the production for social casino games.

Accrued Expenses by IGT and DoubleDown Interactive in Connection with the Lawsuit

Stemming from the costs in connection with the settlement agreement, both IGT and DoubleDown Interactive will suffer non-operating expenses for the period from July 1 to September 30, 2022. The expense for IGT will amount to $119.75 million, while the expense of DoubleDown Interactive will be $70.25 million. Additionally, DoubleDown Interactive has so far incurred expenses in connection with the Benson Matters totaling $75 million. On the other hand, IGT’s expenses related to the Benson case, which the company reported during the period from April 1 to June 30, amount to a total of $150 million.