5th Oct 2023 16:33
(Alliance News) - Playtech PLC on Thursday said it had not been served with any legal proceedings after an announcement that one of its customers had started legal action against it.
The Isle of Man-based gambling software development company said it noted an announcement by Tecnologia en Entretenimiento Caliplay, SAPI de CV, that Caliplay has issued legal proceedings in Mexico against, amongst others, Playtech Software Ltd and PT Services Malta Ltd.
It described Caliplay as a "highly valued customer and partner of Playtech" and said this has been an extremely productive relationship for both parties.
Whilst Caliplay has stated that the Mexican courts accepted jurisdiction on August 28, Playtech only became aware of the issuance of proceedings on Thursday, it said.
Playtech has not yet had access to the court filings in Mexico and, to the best of its knowledge, has not yet been served with any proceedings, it added.
"Once Playtech has had access to Caliplay's court filings and has been able to review the substance of any proceedings, the company will update shareholders further as necessary," it added.
A report by PR Newswire said Caliplay is trying to annul the legal relationship between Caliplay, Playtech, and related parties contained in various contractual agreements.
The report added that, on Augsut 28, the Mexican Court accepted jurisdiction over the claim and issued a number of interim orders pending final resolution of that claim, which include the suspension of key rights held by Playtech under the agreements.
Playtech has been ordered to continue providing software and services to Caliplay pending final resolution of the claim. This is despite the suspension of other rights, including Playtech's right to receive payments directly from Caliplay for those services, the report added.
In February, Playtech said it was seeking a declaration from the English Courts for clarification on a point of disagreement with Caliplay.
It said the matter of the disagreement is whether Caliplay still holds an option to redeem the additional services fee element of the agreement.
Playtech noted that Caliplay does not consider the option to have expired, but has not yet tried to exercise the option.
Shares in Playtech fell 1.9% to 410.00 pence on Thursday afternoon in London.
By Jeremy Cutler, Alliance News reporter
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