Japan’s Universal Entertainment Corporation has filed a lawsuit against former subsidiary Aruze Gaming America, Inc (AGA) and its owner, former Universal Chairman Kazuo Okada, for violation of patent rights on gaming machines.
The suit was filed with a District Court in Nevada on 30 March 2018, with Universal revealing this week that it had become clear that “AGA had illegally used patents on gaming machines belonging to the company to conduct the sales of gaming machines in the United States, and that Kazuo Okada, a former director of the company, had illegal involvement in those activities.”
The financial compensation sought is yet to be finalized.
AGA, which manufactures and sells gaming machines to US casinos, was formerly a consolidated subsidiary of Universal but the company’s entire stake was sold to Okada in March 2010.
Universal’s lawsuit is seeking the removal of obstruction and compensation of damages based on the violation of patents.
Initiation of the lawsuit came on the very same day that Universal was paid a US$2.5 billion settlement by Wynn Resorts related to the forced redemption by Wynn in 2012 of shares owned by former board member Okada and Aruze USA worth almost US$2.8 billion.
Wynn claimed at the time that Okada had put Wynn’s gaming license in jeopardy amid allegations he provided improper hospitality at Wynn properties to Philippine gaming officials to the tune of US$110,000.
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