Scientific Games (SG) was ordered to hand over $315 million to four different companies as a result of litigation stemming from a patent dispute. A jury last week determined that the US-based company had bullied a smaller company to keep it from introducing a competing automatic card-shuffling device, resulting in the sizeable financial penalty. SG isn’t giving in just yet, though, and will more than likely fight the settlement.
Shuffle Tech International, along with three other plaintiffs, argued that SG kept them out of the market using “sham patent litigation against any competitor that dared to market competitive card shufflers.” The jury agreed and awarded the companies $105 million. The judge presiding over the case apparently felt that the amount was too little and subsequently tripled it. The amount ordered is equal to around 10% of SG’s market capitalization.
Following the announcement of the verdict, SG filed a statement with the US Securities and Exchange Commission (SEC), in which it said that the jury had incorrectly decided the case, and that it plans on seeking a review.
Union Gaming expects that the appeal could help the company’s situation. SG analyst John DeCree believes that an appeal could result in either the company not having to pay for at least another 18 months, or that it could reduce the monetary award. Additionally, suggests DeCree, it could result in the verdict being thrown out completely.