Will the class action affect existing shareholder rights or cause potential dilution if a settlement involves issuing new shares?

Impact on shareholder rights & dilution

A class‑action suit itself does not change the rights of existing shareholders. Until a settlement is negotiated, the only effect is the legal claim that the company may have to satisfy. Most settlements in securities class actions are paid in cash (or a combination of cash and existing securities) rather than by issuing new shares, precisely because issuing fresh stock would further dilute the already‑traded pool and could trigger additional regulatory and governance complications. Consequently, the mere existence of the suit is unlikely to erode current voting or economic rights of ALT holders.

If the parties eventually agree to a settlement that includes new‑share issuance (e.g., a “share‑for‑cash” plan to fund the payout), the dilution risk would be material but is still speculative at this stage. Such a structure would increase the total share count, marginally depress the per‑share price, and could slightly shift control dynamics—especially if the new shares are issued to a broad class of claimants rather than a single entity. Until the settlement terms are disclosed, the market will price in a modest “contingent‑dilution” premium, typically reflected in a modestly higher implied volatility on the ALT options chain.

Trading implications

• Short‑term: Expect a modest‑to‑moderate increase in ALT’s implied volatility and a slight downward pressure on the stock as investors price in legal‑risk uncertainty. The 20‑day moving average (≈ $9.30) still sits above the 50‑day average, indicating the stock is holding its trend, but the recent dip toward the lower Bollinger band suggests a short‑term bounce‑back could be tested if the settlement news is cash‑based.
  
• Actionable: Maintain a neutral‑to‑light‑long stance. If the settlement is announced as a cash payment, the stock could rally on the removal of the dilution concern; a share‑issuance component would likely trigger a modest pull‑back, making a tight stop‑loss short around the recent low (~$8.70) a viable hedge. Keep an eye on any SEC filings or press releases from Robbins LLP or Altimmune that outline settlement mechanics, as those will be the catalyst for the next price move.