Everi Holdings replied last week to a suit in Texas federal court that was filed almost two months ago by Sightline payments. The Texas-based company is seeking to dismiss the case, or move it to Nevada.
Everi Accused of Patent Infringement
Sightline filed the lawsuit against Everi on September 30. It claims that Everi’s CashClub Wallet cashless gambling solution infringes at least five of its patents. Sightline, based in Las Vegas, filed the lawsuit in the Western District of Texas US District Court.
Sightline listed Everi Holdings as a defendant in the case, along with Everi Payments and Everi Games Holding. However, attorney John Artz of Dickinson Wright PLLC, stated in a response last week to the court that Everi Payments is the only Everi litigant and does not have a “regular and established business place” in the area.
Artz’s filing shows that Everi Games Holding is the only entity in the jurisdiction. He said, however, that the four entities listed are not “alter egos.” Artz also cited federal copyright and patent law. This means that civil actions should be brought in the place of alleged infringement or the place where the accused company is located.
Everi stated that the action could have and should have been brought to the District of Nevada. It adds, “Moreover, all of the material physical evidence and documents are located in Nevada; the relevant party and third-party witnesses are located in Nevada; and Nevada has a localized interest in this case.”
Errors Appear in Lawsuit Filing
Everi stated in the same motion that, if the whole case is not dismissed then Everi Games Holding and Everi Games should be dropped from the lawsuit. Artz stated that nothing shows that either defendant has developed, marketed or used cashless gaming solutions.
Sightline sued Everi Holdings and listed the companies as it claimed Everi Holdings “publicly refers” to itself and its subsidiaries within the collective. Sightline also noted Everi’s promotion of a “digital community” at the Global Gaming Expo last October. This was a complete set of financial, consumer loyalty and compliance products that interested parties could purchase as a package.
Jennifer Carlton, Chief Legal Officer at Sightline, stated Monday that Everi’s reply did not “substantively address” the claims in the lawsuit.
Sightline claims Everi’s CashClub Wallet is based on systems that link non-wagering accounts to gaming environments and allow gaming systems access to the funds. Sightline claims that this solution is similar to the one it created, which is based on the technology its three cofounders invented.
There is no set time for US District Judge Alan D. Albright to rule on Everi’s motion or Sightline’s response.