TAB took Keycorp to court in August over defects in custom designed gaming machines supplied exclusively to TAB. According to a statement issued by Keycorp, the whole problem came down to faulty parts sourced from a U.S. based manufacturer.
While the terms of the settlement have not been disclosed, Keycorp says a "significant part" of the claim will be paid by the company's insurer. Keycorp will continue "to replace the defective component in the affected devices as part of maintenance services for TAB's fleet of such devices under a maintenance agreement".
The amount of damages sought by TAB wasn't disclosed, but the gaming company had claimed the figure was over AU$6 million.
Keycorp will now "pursue a subrogated recovery action against the US manufacturer of the defective component and its Australian distributor for both insured and uninsured losses".
