Churchill Downs and Aristocrat Leisure have entered into an agreement in principle to settle the Kater v Churchill Downs and Thimmegowda v Big Fish Games lawsuits.
Churchill Downs completed its sale of Big Fish Games to Aristocrat in January 2018. The agreement in principle remains contingent on final court approval by the US Federal District Court for the Western District of Washington.
Under the terms of the settlement, which will take effect only after final court approval of the proposed class settlement:
A total of US$155m will be paid into a settlement fund. CD will pay US$124m of the settlement from its available cash. Aristocrat will pay US$31m of the settlement.
All members of the nationwide settlement class who do not exclude themselves will release all claims relating to the subject matter of the lawsuits.
Aristocrat has agreed to specifically release CD of any and all indemnification obligations under the Stock Purchase Agreement dated November 29, 2017, between CD, Aristocrat and Big Fish Games arising from or related to the Kater and Thimmegowda litigations, including any claims of diminution of value of Big Fish Games and any claims by any person who opts out of the proposed class settlement.
The parties have agreed to provide notice to the District Court that the parties have reached a settlement in principle and to request that the cases be stayed pending execution and filing of a formal settlement agreement.