DoubleDown Interactive (DDI) and International Game Technology (IGT) to settle legal proceedings related to the Benson class action lawsuit
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DoubleDown Interactive Co., Ltd. (NASDAQ: DDI) (“DoubleDown” or the “Company”), a leading developer and publisher of digital social casino games, and International Game Technology PLC (NYSE: IGT) (“IGT”), today announced today an agreement in principle to settle Benson v. DoubleDown Interactive LLC, et. Al. lawsuit and related proceedings (the “Benson Cases”). IGT has completed the sale of DoubleDown Interactive LLC (“DDI”), the social gaming operator, DoubleDownCasinoto DoubleU Diamond LLC, a subsidiary of DoubleDown, in June 2017. The tentative agreement, reached by certain subsidiaries of IGT and DoubleDown, remains subject to final court approval by the United States Court for the Western District of Washington.
The terms of the settlement, which do not become effective until the court finally approves the proposed class settlement, provide that, among other things:
- A total of $415 million will be paid into a settlement fund of which IGT subsidiaries will contribute $269.75 million and DDI will contribute $145.25 million; and
- All members of the Nationwide Settlement Class who do not opt out will waive all claims relating to the subject matter of the lawsuit.
Subject to final court approval of the settlement of the Benson v. DoubleDown Interactive LLC, et. Al. lawsuit, IGT and DoubleDown have also resolved all indemnification and other claims between them and their respective subsidiaries and affiliates relating to the Benson Matters.
Following the settlement agreement, DoubleDown will record a charge of $70.25 million in the third quarter of 2022 related to the additional loss associated with the Benson cases and related claims between IGT and DoubleDown and their respective subsidiaries and affiliates. . To date, DoubleDown has already racked up a total of $75 million in expenses related to the Benson cases.