Expected timeline and possible legal fallout
Pomerantz LLP’s notice does not spell out a concrete timetable, but in comparable securities‑fraud investigations the firm usually moves from intake to a formal claim filing within 4 – 8 weeks. After the claim is filed, the “discovery” phase—exchange of documents, witness interviews and expert reports— typically runs 2 – 3 months. If the case proceeds to settlement or trial, the overall process from the initial filing to a final resolution (either a court‑ordered judgment, a confidential settlement, or a dismissal) often spans 4 – 6 months, with the longest‑run scenarios (full trial) extending to 12 months or more.
Trading implications
Until the investigation’s first substantive filing, the market will price the risk on a “probability‑weighted” basis. Expect heightened volatility in ALT’s shares over the next 3‑6 weeks as investors digest the initial claim and any early‑stage disclosures (e.g., SEC 8‑K filings, press releases). If the investigation uncovers material misstatements or breaches of fiduciary duty, the most common legal outcomes are:
- Settlement – a cash or equity payout to affected investors (often 5‑15 % of market cap) that can be announced within 2‑4 months after the claim is filed.
- Court‑ordered judgment – a larger, potentially dilutive award that may not be finalized until 6‑12 months.
- Dismissal or no‑cause finding – the quickest resolution, typically within 2‑3 months, which would remove the downside pressure and could trigger a short‑cover rally.
Actionable take‑away: Keep a tight stop‑loss (≈ 5 % below current levels) for the next 4‑6 weeks as the investigation moves toward its first filing. If a settlement or adverse ruling materialises, consider a short‑position or a protective put; if the case is dismissed, be ready to flip back to a long bias on any bounce‑back, especially on the breakout of the 20‑day SMA. Monitoring SEC filings, Pomerantz’s docket updates, and any ALT‑related press releases will be key to timing entry and exit.