Why Light & Wonder Stock Blasted 10% Higher Today

Gaming technology stock Light & Wonder (NASDAQ: LNW) -- formerly known as Scientific Games -- proved to be quite the solid bet on Wednesday. On some very positive news in the legal sphere, investors piled into the company's shares, pumping them more than 10% higher in price. That looked especially good when compared to the S&P 500's (SNPINDEX: ^GSPC) flatline performance.

A Wonderful turn of events in a court case

Light & Wonder is currently locked in a legal dispute with peer company Aristocrat Leisure. Aristocrat is accusing it of copying elements from one of its casino slot games in the design of Light & Wonder's Dragon Train game.

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On Wednesday, the Nevada court in which the case is being heard made a ruling on discovery that favors Light & Wonder. It ruled that the company will not have to reveal its math models on the slot games in question. In addition, the court asked for specificity from Aristocrat regarding the trade secrets it's litigating to protect.

Aristocrat, which is headquartered in Australia, brought its case against the American company in 2024. At the time, it stated in a press release that it "will seek all appropriate remedies to address the harm caused by Light & Wonder's actions."

Not the time to celebrate yet

Light & Wonder had, understandably, been fairly quiet about the case. Perhaps it'll speak up more now that it seems to be tilting in its favor.

Having said that, I wouldn't be ready to break out the champagne if I were a shareholder, at least not yet. Court cases can develop and resolve in unexpected ways, and Light & Wonder isn't out of the woods. I don't think anyone should buy or sell the company's stock based on predictions of the lawsuit's outcome.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Light & Wonder. The Motley Fool has a disclosure policy.