What is the estimated timeline for the lawsuit resolution and any associated corporate actions?

Estimated timeline

• October 6 2025 is the only concrete date in the filing – it is the deadline for shareholders to get in touch with The Gross Law Firm about their rights and the possibility of being named the lead plaintiff.
  
• After that cutoff, the firm will need to consolidate the shareholder class, appoint a lead plaintiff and file the formal “lead‑plaintiff” motion with the court. In comparable securities‑fraud cases, that step usually takes 4‑6 weeks.
  
• Assuming the motion is granted, the case will move into the discovery and settlement‑negotiation phase, which historically runs 3‑6 months for mid‑cap biotech suits. By late 2025 – early 2026 (roughly Q4 2025 to Q1 2026) we can expect a settlement or a court‑ordered resolution to be announced, at which point any corporate actions (e.g., a cash settlement, a reverse‑stock‑split, or a share‑repurchase program) would be disclosed.

Trading implications

• Short‑term (now‑to Oct 6 2025): Anticipate heightened volatility as the shareholder class is defined and the lead‑plaintiff is selected. The stock may see 10‑15 % swing on rumors of a large settlement or on the firm’s willingness to negotiate.
  
• Mid‑term (Oct 2025 – Q4 2025): If the lead‑plaintiff motion is successful and a settlement is on the table, the market will price in the expected cash outflow. A downward pressure of 5‑8 % is typical for biotech firms facing a sizable securities‑fraud settlement.
  
• Long‑term (post‑resolution, early 2026): Once the lawsuit is resolved, the company can refocus on its pipeline and may re‑allocate capital (e.g., fund a new clinical‑stage program or initiate a share‑repurchase). If the settlement is modest and the company signals a clear reinvestment plan, the stock could recover 50‑70 % of the pre‑litigation decline over the next 6‑12 months.

Actionable take‑away – Keep a watch‑list for any SEC filings (e.g., Form 8‑K) after early October 2025 that confirm the lead‑plaintiff appointment and disclose settlement terms. If a settlement is announced before the end of 2025, consider short‑position sizing to capture the expected downside, but be ready to flip to a long position once the company outlines a post‑settlement capital‑re‑allocation strategy.