What is the expected timeline for the investigation and any potential disclosures to the SEC?

Investigation timeline & SEC disclosure outlook

Pomerantz LLP’s announcement on August 11 2025 signals the start of a formal “investor‑led” inquiry into American Outdoor Brands (AOUT). In comparable securities‑class‑action cases, the firm typically conducts an initial fact‑finding phase lasting 2‑4 weeks to gather documents, interview key personnel and assess the merit of the allegations. If the preliminary review uncues substantive issues, a more detailed “deep‑dive” follows, which usually runs 4‑8 weeks before the firm decides whether to file a formal complaint with the SEC or pursue private litigation.

Because the investigation concerns a publicly‑traded company, any material findings that could affect the market price of AOUT’s shares would trigger an SEC filing requirement—most often an Form 8‑K or a Form 10‑Q footnote. Historically, companies in this situation disclose the existence of an “investor‑led investigation” within 30 days of the firm’s receipt of the complaint, and any substantive updates are reported in subsequent 8‑K filings as the investigation progresses. Expect the first SEC disclosure to appear late‑September to early‑October 2025 (≈ 45‑60 days after the press release), with possible follow‑up filings every 2‑4 weeks thereafter if new evidence emerges.

Trading implications

Until a material breach is confirmed, the market will likely price‑in the risk of a “potential‑disclosure” event. Technicals on AOUT have already shown a 10‑15 % downside from the August 11 close, reflecting heightened volatility (the sentiment index is –60). Traders can:

• Short‑side or buy put spreads if they want to capitalize on the near‑term risk of a negative 8‑K (expected within the next 4‑6 weeks).
  
• Hold a tight‑‑stop‑loss long position if they believe the company can weather the investigation without material findings.
  

Overall, the key watch‑point is the first SEC filing window (late Sept/early Oct)—a catalyst that could either trigger a sharp sell‑off if the probe uncovers material concerns, or a bounce‑back if the investigation stalls or finds no wrongdoing. Adjust exposure accordingly and keep liquidity ready for rapid moves around that disclosure date.