IGT and DoubleDown Interactive announce $415m fund to settle lawsuit

Home » IGT and DoubleDown Interactive announce $415m fund to settle lawsuit

International Game Technology (IGT) will contribute to a $415 million settlement to resolve a class action lawsuit involving DoubleDown Interactive (DDI).
Benson v DoubleDown Interactive is a lawsuit filed against DDI over its social casino product, which the plaintiffs claim violated Washington State law.
Meanwhile, IGT purchased DoubleDown in 2012 before selling it to DoubleU Games for $825 million in 2017. In addition, the supplier has entered into a long-term agreement to provide content on DoubleDown Casino.

As a result, IGT was named as a defendant in the plaintiffs’ lawsuit alongside DDI. However, both IGT and DDI have now announced a settlement agreement to end the lawsuit and related proceedings.

A total of $415 million will be paid into a settlement fund, with IGT subsidiaries contributing $269.75 million and DDI contributing $145.25 million.

In turn, “all members of the nationwide settlement class who do not exclude themselves will release all claims relating to the lawsuit’s subject matter.”

This agreement will go into effect only after it has been approved by the court. “The agreement in principle, entered into by certain subsidiaries of IGT and DoubleDown, remains contingent on final court approval by the US Federal District Court for the Western District of Washington,” IGT said in a statement.

IGT and DoubleDown have also “resolved all indemnification and other claims between themselves and their respective subsidiaries and affiliates relating to the Benson Matters,” subject to final court approval.

IGT also issued a heads-up to stakeholders. As a result of this settlement, it will incur a non-operating expense of $119.75 million in the third quarter.

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