International Game Technology (IGT), the Nevada based company specializing in design, development, manufacturing, sales and distribution of gaming machines and network system products, as well as online and mobile gaming solutions in the US and abroad, are witnessing bitter conflict between their former executive Charles Mathewson and the current board.
Ader Investment Management LP, a group of investors led by the former Chair and possessing some 3% of IGT’s shares has proposed adding four people to the company’s board of directors – including Mathewson himself – at the next annual meeting.
In response to the nomination IGT have addressed investors with a strongly worded statement, urging them to block these nominations and vote for the current board instead. They claim that the hostile move is “the result of a long-running dispute between IGT and Mr Mathewson”.
The company reminds investors that “following Mr Mathewson’s retirement in 2003, he has repeatedly attempted to exert influence over the company’s operations and extract personal financial benefits at the expense of all other shareholders. In 2010, the IGT board severed all financial ties with Mr. Mathewson.”
IGT also derided Ader Group, claiming that the latter “has not suggested any constructive alternatives to the company’s strategy”, despite being invited by IGT to do so several times.
International Game Technology are one of the biggest players in the industry, going from a small private manufacturer to an S&P 500 company in 50 years. IGT have been a recurring subject of American gambling news thanks to the numerous awards they have collected over the past years. They have also been responsible for some well known online casino game titles, such as Multi-Slot Jackpot Extreme, Pharaoh’s Fortune or Hot Streak Roulette.
IGT has been involved in online gaming since 2005 – naturally, in strict compliance with American gambling laws.