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International Game Technology PLC


The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of those who acquired International Game Technology PLC (“IGT” or the “Company”) (NYSE: IGT) securities between March 16, 2022 through August 29, 2022 (the “Class Period”). Investors have until December 13, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
 
IGT designs and manufactures computerized casino gaming systems.
 
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”) (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 May 10, 2018, DDI and DoubleU sent a claim notice (the “DDI Claim Notice”) to IGT Subsidiary seeking indemnification and reimbursement of defense costs for all claims against DoubleU and its affiliates in the Benson Action pursuant to the terms of certain agreements with DoubleU.
 
On August 29, 2022, IGT and DDI issued a joint press release “announc[ing] an agreement in principle to settle the Benson 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, the price of  IGT shares declined by $0.46 per share, or approximately 2.45%, from $18.74 per share to close at $18.28 on August 30, 2022.
 
The lawsuit alleges that, throughout the Class Period, Defendants misled investors 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 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.
 

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