A former Light & Wonder (NASDAQ: LNW) claimed a superior ordered him to falsify financial reports — allegations that if proven true in court could potentially uncover skirting of federal securities laws.
In a whistleblower suit filed last month in Oakland County, Mi. Circuit Court, Antonio Amormino — the former staffer of the slot machine manufacturer — claimed that Vice President of Operations Dror Damchinsky asked him to alter Light & Wonder’s budget file, which could have painted a rosier picture of the company’s financials than was reality.
(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,” according to Amormino’s legal complaint.
Counsel for the plaintiff, who was formerly head of Light & Wonder’s casino studio for North America, added in the court filing that their client was fired for failing to comply with Damchinsky’s request. If that’s accurate, it would be a violation of Michigan whistleblower laws. The gaming device manufacturer told press outlets it disagrees with Amormino’s assertions and that it’s vigorously defending itself through appropriate legal channels.
Light & Wonder Exec Balked at Boss’s Requests
The court document indicates Damchinsky approached Amormino on July 9 about potentially changing the budget file to perhaps bolster the appearance of Light & Wonder’s financials. The plaintiff didn’t oblige, warning Damchinsky that such action could run afoul of the Sarbanes-Oxley Act.
Colloquially known as “SOX,” that bill was signed into law in 2002 following the collapse of Enron. It’s aimed at shoring up transparency at publicly traded firms and safeguarding against financial fraud. The legal filing also noted that Amormino notified head of accounting Vickie Huber and office manager Melissa Sly about Damchinsky’s demands, but he followed up with a similar request of Amormino on July 31.
Attorneys for the plaintiff claimed an internal investigation ignored their client’s concerns. Amormino filed a complaint with the Occupational Safety and Health Administration (OSHA) on Aug. 12 and he was dismissed from the gaming company four days later.
Amormino’s legal team claimed that firing was retaliatory and if that’s true, it could constitute a violation of Michigan’s Whistleblower Protection Act, which contains protections for employee ousters that could be considered outside the bounds of the law.
Light & Wonder Fighting Back
Light & Wonder, which is dealing with litigation on other fronts, has filed a motion of dismissal and was recently successful in getting the case moved to the to the federal Michigan Eastern District Court. The motion of dismissal was filed on the basis that Amormino’s claims lack legal merit.
The company also contended that it didn’t even know about Amormino’s OSHA complaint until two days after he was fired, adding that OSHA complaints aren’t covered by Michigan whistleblower laws because the administration doesn’t qualify as a public entity under the language of the state’s laws.
Light & Wonder also asserted that Amormino has no rights to a jury trial because those rights were waived in his employment agreement with the company.
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