Light & Wonder Moves To Dismiss Complaint From Former Employee Alleging Financial Misconduct, Wrongful Termination

Gaming and entertainment supplier Light & Wonder is facing a new legal challenge, this time from a former employee. As first reported by Next.io, Antonio Amormino claims he was pressured to manipulate the company’s financial reports, an allegation that if true may continue to damage the company’s standing in the gaming industry.

Amormino previously served as the company’s Head of Casino Studio for North America. He filed his lawsuit on Oct. 14 alleging that he was asked by VP of Operations Dror Damchinsky to falsify financial data related to the company’s capital assets.

Central to Amormino’s lawsuit is the assertion that these actions were aimed at misrepresenting Light & Wonder’s financial health. He claims that internal complaints about this alleged misconduct were ignored, and his employment was subsequently terminated after raising these concerns.

Amormino’s lawsuit further alleges that his firing was retaliation for filing a complaint with the Occupational Safety and Health Administration (OSHA). According to the claim, Light & Wonder’s actions violated Michigan’s Whistleblower Protection Act, which is designed to safeguard employees who report wrongdoing.

In response, Light & Wonder has sought to have the case dismissed, arguing in a Nov. 20 motion that Amormino’s claims are insufficient for legal relief. The company’s motion to dismiss contends that OSHA does not qualify as a “public body” under the state’s whistleblower laws, which would exempt it from the protections cited in the complaint.

Legal troubles multiply

This lawsuit is one of several legal disputes currently involving Light & Wonder. The company is also entangled in a separate case with Aristocrat, another gaming firm, which alleges that Light & Wonder failed to comply with a court order regarding trade secrets.

Aristocrat has accused Light & Wonder of inadequately searching for and disclosing documents related to its proprietary information. Specifically, the complaint claims that Light & Wonder has not sufficiently identified instances in which it disclosed Aristocrat’s trade secrets, especially in connection with its Dragon Train game.

In an effort to address the accusations, Light & Wonder terminated Emma Charles, the former Aristocrat employee who joined the company and allegedly brought trade secrets from her previous role. However, Aristocrat argues that its intellectual property extends beyond Dragon Train and includes game mathematics that could be used across multiple titles.

Light & Wonder has requested an extension from the court to ensure compliance with the preliminary injunction, citing reasons different from Aristocrat’s allegations. In its latest financial update, the company reported significant progress in addressing the issue.

Of the approximately 2,200 Dragon Train-themed game units in circulation, 95% have either been removed or converted to other titles from Light & Wonder’s portfolio. The company also announced plans to release Dragon Train 2 in the near future.

Aristocrat, however, has expressed dissatisfaction with Light & Wonder’s compliance efforts. In a recent court filing this week, it claims that Light & Wonder has failed to meet key requirements of the injunction, particularly those involving the production of case-related documents.

According to Aristocrat, Light & Wonder has made minimal effort to search for materials containing its trade secrets or to detail instances where those trade secrets were disclosed outside the scope of the Dragon Train project.

Broader implications

These legal challenges come at a time when Light & Wonder is under scrutiny for both its corporate practices and competitive conduct in the gaming industry. The whistleblower lawsuit, if upheld, could have significant implications for the company’s internal governance and its adherence to regulatory standards.

Additionally, the ongoing dispute with Aristocrat highlights the complexities of intellectual property management in the gaming sector, where the use of mathematical models and game designs often blurs the lines between innovation and imitation.