Published on: November 25, 2024, 04:44h.
Last updated on: November 25, 2024, 04:44h.
A former Light & Wonder (NASDAQ: LNW) employee alleged that a superior instructed him to manipulate financial reports — an accusation that, if proven in court, could reveal violations of federal securities laws.
In a recent whistleblower lawsuit filed in Oakland County, Mi. Circuit Court, Antonio Amormino — a former employee of the slot machine manufacturer — alleged that Vice President of Operations Dror Damchinsky requested him to modify Light & Wonder’s budget file, potentially presenting an inflated view of the company’s financial status.
(Damchinsky) requested that he generate different numbers for the company’s capital asset reports, thereby attempting to present a false picture of the company’s financial condition,” as stated in Amormino’s legal complaint.
The plaintiff’s counsel, a former head of Light & Wonder’s casino studio for North America, claimed in the court filing that their client was terminated for refusing to comply with Damchinsky’s orders. If proven true, this could be a violation of Michigan whistleblower laws. The gaming device manufacturer has disputed Amormino’s allegations and is vigorously defending itself through legal means.
Light & Wonder Executive Resists Pressure
The legal document reveals that Damchinsky approached Amormino on July 9, suggesting changes to the budget file to potentially improve Light & Wonder’s financial outlook. Amormino declined, cautioning Damchinsky that such actions could violate the Sarbanes-Oxley Act.
Commonly referred to as “SOX,” this legislation, enacted in 2002 post the Enron scandal, aims to enhance transparency in publicly traded firms and prevent financial misconduct. The legal filing also mentioned that Amormino informed head of accounting Vickie Huber and office manager Melissa Sly about Damchinsky’s demands, but Damchinsky persisted with a similar request on July 31.
The plaintiff’s attorneys argued that an internal investigation disregarded their client’s concerns. Amormino lodged a complaint with the Occupational Safety and Health Administration (OSHA) on Aug. 12 and was terminated from the company four days later.
Amormino’s legal team contended that his termination was retaliatory, potentially violating Michigan’s Whistleblower Protection Act, which safeguards employees who face unlawful dismissal.
Light & Wonder’s Defense Strategy
Amid facing legal challenges on multiple fronts, Light & Wonder has moved to dismiss the case and successfully transferred it to the federal Michigan Eastern District Court. The motion to dismiss was based on the argument that Amormino’s claims lack legal validity.
The company also stated that it only became aware of Amormino’s OSHA complaint two days after his termination, emphasizing that OSHA complaints are not covered under Michigan whistleblower laws due to OSHA not being considered a public entity as per state regulations.
Light & Wonder further asserted that Amormino waived his right to a jury trial in his employment agreement with the company.